5 Steps To Get Started How To Invest In Mutual Funds For Beginners


Who doesn’t know about mutual fund investing? Maybe for some people only know this term and only know at a glance. As additional information, investment mutual funds it is recommended for beginners because it is not directly managed. Now it’s more curious not to know how to invest in mutual funds that can generate profits.

The way to invest in mutual funds is certainly a little different than investing in stocks or other investment products because there are quite a few differences. In short, it is very easy to invest money in mutual fund products, there is not even a minimum purchase. Let’s just look at how to invest in mutual fund products as follows:

How to Buy Mutual Fund Products?

Before getting the benefits that will be obtained, of course, you must first know how to buy mutual fund products. Purchases can indeed be made directly, but there are steps or tips certain because purchases have an impact on profits. In this regard, here is a discussion on how to invest in mutual funds and what you should know before buying a product, namely:

  • The first step is to choose one platform in accordance with the portfolio owned. A number of online platform recommended ones such as Ajaib or Bibit and do focus on mutual fund investments.
  • Download the application and register by filling in several identities and photos of yourself to your ID card.
  • After that, carefully study the terms and conditions of the application.
  • Choose one of the desired types of mutual funds, namely stock, bond, and money market mutual funds. The risk and return of stock mutual funds is the highest, while the money market is the lowest.
  • After determining the type of mutual fund, select one of the products in that type and view the detailed information.
  • Consider the graphics the product has had for at least the past three years.
  • Choose the product that has the highest total AUM because it has the potential to be more profitable.
  • Then look at other things like minimum purchases, holding banks, and custodian banks. Try to find products with your own custodian bank so that the search process does not require additional costs.
  • After the mutual fund product is deemed suitable, then the next step is to make a purchase.
  • Click buy on the mutual fund product, then select the type of payment you want.
  • Enter the desired amount and make payment.
  • When making a payment, also follow the previously selected method and nominal.
  • Wait for the working time about 2 to 3 days to make sure

Steps to Take After Buying Mutual Fund Products

After knowing how to invest in mutual funds, the next step that must be known is how to manage the money. Compared to investment products in the form of goods, mutual fund benefits are more visible because they are updated every day. In addition, mutual funds are also more risk-friendly than stock products. See further explanation below:

  • After making sure the product is successfully signed in, see the advantages it has.
  • When the results are profitable, then just hold on and focus on achieving the goal.
  • On the other hand, if the result is a loss, then make a purchase. This method is considered more effective in mutual funds because it will reduce the average purchase.
  • Just do it by doing top up when you are at a loss.
  • Then focus on the initial goal and better maintain long-term mutual fund products until they reach the goal.

Those are some steps that must be taken in investing in mutual funds before and after sending money to a mutual fund platform The selected. In addition, mutual funds will not provide high profits in the short term. But it is suitable for medium to long term goals. Thus the explanation this time and hopefully it can be useful for joining as an investor.

Read also: What is the difference between Mutual Funds and Stocks? This is the explanation

Source link