Mutual funds are a popular investment option for many individuals, and with good reason. They offer an easy and affordable way to diversify your portfolio and grow your wealth over the long term. And when it comes to investing in mutual funds, direct mutual funds are often considered the better option compared to regular mutual funds. This is because direct mutual funds come with lower expense ratios and higher returns. If you are a Zerodha user, you can easily invest in direct mutual funds through the platform. Here is a detailed step-by-step guide on how to buy direct mutual funds in Zerodha.
Step 1: Open a Zerodha Account
The first step is to open a Zerodha account if you don’t already have one. You can visit the Zerodha website and follow the instructions to create a new account. Once your account is created, you will receive a confirmation email and a password to log in to your account.
Step 2: Complete Your KYC
The next step is to complete your KYC (Know Your Customer) process. This is a mandatory step for all investors who want to invest in mutual funds. You can complete your KYC process by uploading your documents online or by visiting a Zerodha branch in person.
Step 3: Select a Direct Mutual Fund
Once your KYC process is complete, you can start investing in direct mutual funds. Zerodha provides a list of direct mutual funds that you can choose from. You can filter these funds based on your investment objectives, risk appetite, and other parameters. Once you have identified a mutual fund that aligns with your investment goals, you can move on to the next step.
Step 4: Place an Order
To buy a direct mutual fund through Zerodha, you need to place an order. To do this, log in to your Zerodha account and click on the ‘Mutual Funds’ tab. From there, select the direct mutual fund you want to invest in and enter the amount you wish to invest. You will also have the option to set up a Systematic Investment Plan (SIP) if you want to invest a fixed amount at regular intervals. Once you have entered all the necessary details, click on the ‘Buy’ button to place your order.
Step 5: Make Payment
The next step is to make payment for your investment. You can make payment through net banking or Unified Payments Interface (UPI). Zerodha also provides the option to set up an auto-debit for your SIP investments. Once you have made the payment, your order will be processed, and you will receive a confirmation email with the details of your investment.
Step 6: Track Your Investment
Once you have invested in a direct mutual fund through Zerodha, you can track your investment through the ‘Mutual Funds’ tab in your Zerodha account. You can view your investment history, current holdings, and other details related to your investment. Zerodha also provides regular updates and performance reports for the mutual funds you have invested in.
In conclusion, buying direct mutual funds through Zerodha is easy and straightforward. With the step-by-step guide provided above, you can invest in direct mutual funds and grow your wealth over the long term. However, before investing, it’s essential to do your research and understand the risks involved. Mutual funds come with market risks, and past performance does not guarantee future returns. Therefore, it’s crucial to invest only after careful consideration of your investment goals, risk tolerance, and other factors.