Investing in mutual funds has become a popular way of building wealth over the long-term. Mutual funds allow investors to diversify their investments across various asset classes and sectors, thus reducing risk. In recent years, online platforms have made it easy and convenient for investors to invest in mutual funds. One such platform is Zerodha, a leading online discount brokerage in India. In this blog, we will guide you through the process of investing in mutual funds through Zerodha.
Step 1: Open a Demat Account with Zerodha
To invest in mutual funds through Zerodha, you need to open a Demat account with them. The process is simple and can be completed online. You will need to provide your personal and bank details, PAN card, and other KYC documents.
Step 2: Complete Your KYC Verification
Once you have opened a Demat account with Zerodha, you need to complete your KYC (Know Your Customer) verification. You can do this by submitting your PAN card, Aadhaar card, and a cancelled cheque. Zerodha will verify your documents and approve your KYC within a few days.
Step 3: Log in to Your Zerodha Account
Once your KYC is approved, log in to your Zerodha account using your registered email ID and password. You will be directed to the dashboard.
Step 4: Navigate to the ‘Mutual Funds’ Section
On the dashboard, navigate to the ‘Mutual Funds’ section. Here, you will find a list of mutual funds that you can invest in. You can filter the list based on various parameters such as fund type, fund house, investment objective, and risk profile.
Step 5: Select the Mutual Fund You Want to Invest In
Select the mutual fund you want to invest in. Click on the ‘Invest’ button next to the mutual fund name. You will be directed to a page where you can enter the investment amount.
Step 6: Enter the Investment Amount and Payment Details
Enter the investment amount you want to invest in the mutual fund. You can invest any amount above the minimum investment amount specified by the fund house. You will also need to select the payment mode, such as net banking or UPI, and enter your payment details.
Step 7: Confirm Your Investment
After entering the investment amount and payment details, review your investment details and confirm your investment. Your investment will be processed, and you will receive a confirmation of your investment via email.
Step 8: Track Your Investment
Once your investment is confirmed, you can track your investment through your Zerodha account. You can view your portfolio, track your returns, and make additional investments through the ‘Mutual Funds’ section of your Zerodha account.
Conclusion
Investing in mutual funds through Zerodha is a simple and convenient process. By following the steps outlined above, you can start investing in mutual funds and build a diversified portfolio that meets your investment objectives. It is important to remember that mutual fund investments are subject to market risks, and investors should do their due diligence before investing in any mutual fund. Happy investing!
Read more useful content:
- How to invest in mutual funds
- Best Technology Mutual Funds
- All about mutual funds-types & importance
- The Power of SIP Investment in Mutual Funds
Frequently Asked Questions (FAQs)
Q: What is a Demat account, and why do I need it to invest in mutual funds through Zerodha?
A: A Demat account is a digital account that holds your securities such as stocks, bonds, and mutual funds in an electronic format. You need a Demat account to invest in mutual funds through Zerodha as they are a registered broker with the Securities and Exchange Board of India (SEBI) and are required to maintain records of all securities transactions.
Q: How long does it take to open a Demat account with Zerodha?
A: You can open a Demat account with Zerodha within 15 minutes if you have all the necessary documents and details. However, the KYC verification process may take a few days to complete.
Q: What are the documents required to open a Demat account with Zerodha?
A: To open a Demat account with Zerodha, you need to provide your PAN card, Aadhaar card, bank account details, and other KYC documents such as a passport, driving license, or Voter ID card.
Q: Is there a minimum investment amount to invest in mutual funds through Zerodha?
A: Yes, there is a minimum investment amount to invest in mutual funds through Zerodha. The minimum investment amount varies from fund to fund and can range from Rs.100 to Rs.5000.
Q: How do I select the mutual fund I want to invest in through Zerodha?
A: Zerodha provides a list of mutual funds that you can invest in on their platform. You can filter the list based on various parameters such as fund type, fund house, investment objective, and risk profile. You can also use Zerodha’s mutual fund screener tool to find the best mutual fund for your investment needs.
Q: Can I invest in SIPs (Systematic Investment Plans) through Zerodha?
A: Yes, you can invest in SIPs through Zerodha. SIPs allow you to invest a fixed amount at regular intervals, such as monthly or quarterly, and are a popular way of investing in mutual funds.
Q: How do I track my mutual fund investments made through Zerodha?
A: You can track your mutual fund investments made through Zerodha by logging in to your account and navigating to the ‘Mutual Funds’ section. Here, you can view your portfolio, track your returns, and make additional investments. You can also use Zerodha’s Coin app to track your mutual fund investments on-the-go.
Q: Is there a fee to invest in mutual funds through Zerodha?
A: Zerodha does not charge any fees to invest in mutual funds. However, there may be expenses such as fund management fees and other charges associated with the mutual fund investment itself.
