Personal Finance Blog India –

Precautions To Take While Investing In Mutual Funds:

Small mistakes made while investing in mutual funds,leads to unnecessory headache and expenses.To avoid it,one needs to take some minor precautions while investing.

1.Do not sign casually: Many times I have observed that investors sign casually in mutual fund forms.AMCs in general do not bother about variations in signature from chaque or pan card…But at the time of redemption,,signature in application form is strictly matched with that of in application form.Small variation can lead to rejection of redemptiom.AMcs can demand sign atteastion by bankers.Senior citizens are needed to take more care about it as chances of sign mismatch are higher with them.

2.While submitting the address proof as  KYC documents,try to submit permanent address proof than temporary one.Address proof provided in KYC will be the default address in all of your mutual fund investments.If you provide temporary address and if you change the address in near future then you have to resubmit the address prrof at POA of kyc documets.

3.It is easy to get statement via e-mails so take proper precautions while entering this field.Smaller mistakes(e.g.Underscores to dash etc) can make email insignificant.

4.Check that payout mode is RTGS/NEFT rather than cheque.If not,submit the application along with cancelled copy of cheque to enable NEFT payout facility.

5.Mutual funds do not accept cash so do not offer same to agent.

6.While investing,,better portfolio should be 50% large cap oriented equity diversified, 30% in Mid-cap , 20% in sectoral funds (Pharma,Banking & FMCG).Ensure this pattern with your earlier as well as with new investment.

Category: Mutual Funds


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    Information provided on this blog is for general purpose only & not investment advice.Please take advice of SEBI Registered Investment Advisors before taking any investment decision.
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