Finance

How to invest in a mutual fund without paying commission?

There are many companies in the market which can help one to have good savings and create wealth. A mutual fund is known as one of the best options in the market. As far as the mutual fund is concerned, there are thousands of schemes run by various companies in this segment, which can help one to have better earning on his investment. One can go for small-cap, mid-cap or large-cap companies as per his choice.

Why should one go for Mutual Funds?

In a mutual fund, one can invest in various companies with a small amount of investment also, and one does not need to go for an investment. One can go for the lump-sum payment or for a systematic investment plan. There are wonderful schemes available in the market, and one needs to check each of them as per his requirement and go for the best. If one is not aware, the fundand its parameters, it is better to take help of an expert. As far as these investment options are concerned, one can go for an offline investment option or an online one. One can also go for the direct mutual fund investment in the concerned company or other options. Those who are aware of the online option, itis considered better for them as they don’t need to go to the office or ask an investment consultant. They can fill up the application form online and transfer the amount to the concerned company. If one is not good at online option, obviously offline option is better for him. In this option, one needs to submit the documents physically and fill up the application form. An investor needs to submit them, to the concerned expert or the investment consultant.

The mutual fund statement:

The mutual fund company offers a statement with a folio number. This number is as good as a bank account number. One can also use a mutual fund selection tool which is available on many websites. With the help of the statement, one can understand the situation of his investment. In this statement, the number of units one has in his folio, the scheme, type of investment, date of investment, current NAV,the current valuation of investment etc. information is mentioned. One can have various options in mutual funds. Primarily there are two options. They are growth and dividend.

In dividend option also one can have two options. They are dividend payout and dividend reinvestment. In the growth option, one gets the amount of dividend in his account or a cheque at his place. In dividend reinvestment option the amount of dividend is reinvested in the fund again. One must remember that mutual fund investment is a long term option, and there is no shortcut to be rich in a few days. The mutual fund is for those who want to invest a small amount and do not want to take any risk with the investment amount. The system of the mutual fund is much transparent.

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