One of the greatest investment options is a mutual fund since it provides a variety of possibilities that may be able to meet the needs of every investor. Before that you should know how to invest in mutual funds.
A hassle-free way to invest in a mutual fund is through an online investment platform. The portal provides single account access to know How to invest in mutual funds with numerous AMCs. In order to invest using an online investment platform, you must;
- Register for a user account on the investment platform.
- Take up the scheme.
- Decide the payment amount and type (SIP or lump sum).
- Provide a few personal details, like your PAN number and bank information.
- To finish, make a money transfer online.
- Start with a small amount: One can start investing in mutual funds (through SIPs) with as little as 500. Investors can choose to invest in mutual funds using the SIP mode of investing, which allows them to do so at pre-determined intervals. This alleviates the burden of having to pay a sizable sum all at once.
- Flexibility: SIP for mutual funds must be made at regular periods, which fosters a sense of accountability and dependability in investors. Mutual funds give their investors freedom in terms of increasing or reducing their principal amount based on their personal demands.
- Rupee Cost Averaging: According to the idea of rupee cost averaging, mutual fund investments let investors with long-term investment goals profit from their holdings (in SIP investments).
- Strength of Compounding: Another characteristic that aids investors in making money from their mutual fund investments is the power of compounding. By doing this, investors are guaranteed to gain from both the primary amount deposited and the gains made on it.
- Higher returns: FDs, for example, generate higher returns than the interest earned on traditional investing methods, while mutual funds offer higher yields that effectively combat inflation.
- Tax advantages: Certain mutual funds, such as the ELSS give investors tax advantages. The Income Tax Act’s Section 80C, for instance, exempts investments up to Rs. 1.5 lakh from taxation.
- Investing Convenience: Since there is no direct investor interaction with the market, investing in mutual funds is quite convenient. She or he only needs to sign up with the fund to begin investing. The financial market does not need to be constantly monitored, as with stock trading.
- Scale economies: Mutual funds provide scale economies. An investor saves on transaction expenses when choosing to invest in mutual funds rather than purchasing individual equities from the market.
- Combined Investing: By pooling money from many small investors and investing in stocks and securities that could otherwise be challenging for an investor to purchase individually, mutual funds close the gap between an investor and the fund houses. Individual investors benefit from aggregate investment because transaction costs are reduced.
- Professional knowledge: A qualified fund manager manages your investments when you make a mutual fund investment. Fund managers adjust your mutual fund portfolio as needed to enhance results based on their inputs. This choice may prove useful for following markets or making timely investments.
The investment goal of the Plan is to provide income or capital growth from a portfolio that consists mostly of equity and equity-related assets. In addition to debt and money market products, the Scheme will invest in them. The achievement of the Scheme’s investment goal cannot be guaranteed.
The Plan strives to keep a portfolio that is moderately diversified at all times. Between 65-80 percent of the portfolio will be allocated to equity-related investments. This product is appropriate for investors looking to make long-term capital gains from investments that are primarily made in equity and securities that are tied to equities. In addition to debt and money market products, the Scheme will invest in them. The HDFC Hybrid Equity Fund Direct Plan-Growth scheme has a consistency of return that is comparable to the majority of funds in its class. It performs better than average at limiting losses in a down market.
The 1-year growth returns for HDFC Hybrid Equity Fund Direct Plan are 11.33%. As of Mar. 4, 2023, the HDFC Hybrid Equity Fund expense ratio was 1.12%. As of Mar. 4, 2023, the HDFC Hybrid Equity Fund Direct Plan’s AUM, or assets under management, was 19,174.14Cr.
The equity part of the HDFC Hybrid Equity Fund generally invests in the sectors of finance, energy, capital goods, technology, and consumer staples. Compared to other funds in the category, it has less exposure to the financial and energy industries. ITC Ltd., Reliance Industries Ltd., Infosys Ltd., Housing Development Finance Corporation Ltd., and State Bank of India are the top 5 holdings of the fund.