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Wednesday, 30 January 2019

Top Guidance of Investment in Mutual fund for beginners

Beginning of anything may be quite thorny and challenging but following anything passionately will give victory, mutual fund might be difficult to understand in the beginning but once started, it will become more and more fruitful, there are various funds available in the market categorized on the basis on investment strategies and asset group. Trading in top mutual funds india is totally different from trading in stocks, investment in mutual fund is so daunting for a beginner but to slower down the difficulties let understand the working of mutual fund,

Working strategy of mutual fund

Let’s discuss procedure after filling the form for a mutual fund irrespective of its company and type, as the key procedure remains same:


  • The check was mailed to the transfer agent for depositing it into the custody account, after the deposition they are the one to make sure the allotment of mutual fund based on the value of the fund.
  • Cash is now available in the account for portfolio manager, after receiving the report on which the amount of investment depends, they start checking about the additional stock, bonds, or other securities based on the report.
  • After calculating the pros and cons of every bond, stock and concluding about the 100% investment of the amount it will be handover to trading department, trading depart work with stock brokers, clearing network, some sources of liquidity, as well as investment banks that deals with mutual funds to get the lowest possible prices.
  • After this the procedure of stock exchange happens and stock is been stored in the physical or electronic form.

Picking up the best funds

Some points to dig some of the analyzing strategy of the funds according to the investment goals and outcomes.

Goals with risk tolerance: for first mutual fund three Boston money manager collide together in 1924, and now it controls trillions of dollar and become of the biggest industries in the world, today 8000 mutual funds are available for an investor and decide or collecting some are bit difficult from plethora of mutual fund management companies. two major question for an investor that may solve and easier the decision, it also simplify the investment:

  • Is it for a long term investment or some current income they are looking?
  • Money requirement is for child’s education or for retirement plan?
  • Risk tolerance not seems obvious for everyone looking for mutual fund, investor need to sum up thing into one collide
  • Is it fine to have ups and down within one portfolio of any fund?
  • Comfort with conservative investment strategies?
  • Investment period plays vital role in mutual fund, few questions that help every investor:
  • Fund could be liquid; it is required within few months of investment?
  • Tucking money is ok for you for longer period of time?


Resources never end for choices in top mutual funds; building wealth should be the motive it depends on short-term and long-term investment purpose as well as the amount to be invested. Goals play crucial role in decide mutual fund as it decides the amount of investment and return at the same time, for more also check repeeyog.com

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