How to Invest in Mutual Funds – A Step by Step Guide for Beginners in India !

Mutual funds are proving to be effective investment vehicles where investors can make choices of investment amount and investment domains as per their budgets, preferences and personalized financial needs. These investment domains include stocks, bonds and other money market instruments. This blog offers a comprehensive step by step guide on how to invest in mutual funds for beginners in India. For those who wish to understand mutual funds from the scratch, this is a must-read.

Mfundz offers help to aspiring investors on building a smart and well-planned investment portfolio, as per the prevailing equity and investment markets. The experts at Mfundz analyze your funds availability and your investment needs to the core, before suggesting you the best performing mutual fund schemes so that you land at best investment plan with high returns. Regular suggestions on rebalancing the portfolio to optimize the returns are a regular feature with Mfundz investments.


Why is Portfolio Investment important?

Pre-meditated mutual fund portfolio investments bring a lot of benefits to the people investing their funds.

  • Efficiently managed investments with a transparent and cost-effective process
  • Volatility is reduced by making ample diversification of funds
  • No need to for huge investments, as little as INR 500/- per month is eligible for investment
  • There is no lock-in period
  • The mutual fund investment scheme with 3 years of lock-in period offers tax benefit of INR 1, 50,000 under IT section 80C
  • Investment can be made freely as per the preferred term, amount and anticipated returns


When we know the best investment plan with high returns, is it safe to invest?

Mutual fund investments are most safe for beginners. Yet, it is always advised to invest as per the risk handling capacity. With a vast bouquet of over 5000 investment schemes, it is always good to obtain professional advice before choosing the best instrument for your portfolio investment.


How to Invest in Mutual Funds online?

Initiating your very own investment portfolio at Mfundz is very easy. Here is the step by step process flow for you:

  • Fill up the registration form on this page and Click on the sign-up.
  • Once you sign-up, you would receive OTP (One Time Password) over email and your registered mobile number.
  • Once you verify the OTP, you are taken to the investor profile form where you are required to fill in all the mandatory information through multiple query fields stipulated by BSE.
  • Once you are through filling the form, you just need to upload the imperative documents such as Copy of PAN, Copy of Aadhaar Card and a Cancelled Check or a bank statement for last 2 months with your name, a/c number, bank details and IFSC.
  • You get the access to your dashboard once you fill the investor profile form.
  • If for any given reason you are not able to fill up the form, you can simply upload the documents and our back-end team can fill up the form on your behalf.
  • If your KYC is new and updated, we simply cross verify all details from backend with documents and activate your account.
  • If not, we send KYC form to you over email and ask to courier us signed KYC form along with a self-attested copy of PAN and Aadhaar and one passport size photograph. We have to manually sign and stamp it and submit to CAMS.
  • We cross-check your banking option. If you are comfortable with own net banking, we generate e-mandate from the backend. You get all details in an email about how to add the biller to net banking account.
  • If you are not using net banking, we have to do physical mandate. So along with KYC email, we also send Mandate which you need to sign and send it to us or can be directly couriered to BSE, Mumbai.

And thus, your account is created.


Now let us understand the investment options. Through MFundz you can invest in following three ways:


  1. DIY (Do it Yourself) – Simply select fund/s you want to invest and invest from your investor dashboard.
  2. Robo-Advisory – We have Robo Advisory for Tax saving, wealth creation (equity investments) and smart saving (liquid funds). This auto-advisory board offers advice and suggestions related to funds on the basis of answers/selection from the investor.
  3. Free Advisory – You can also take help from our advisory team. We send Investor profile questionnaire to you on your email id through a website link. On submission of this questionnaire by you, we create a tailored portfolio as per your goals, risk appetite, timeline and existing asset allocation.


Always remember, diversification of funds is an important component of portfolio investment. Keep following-up for further developments to ensure that you get optimum returns.

If you have any more questions on how to invest in mutual funds online, please get in touch with us now and we shall answer all your queries.

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