We have done review and comparison of demat account features and rating to find out which is the Best Demat Account For Mutual Funds, so that you can decide which one is best for investment in sip
What is Mutual Fund ?
Mutual fund means collection of money collected from investors for investment in equity, bonds and money management instruments. Mutual funds are safer investment as compare to investment in individual stocks. Mutual fund hold many companies stock within one investment plan. You dont need to invest in all stocks.
Table of content :
- How to invest in mutual fund through demat in India
- List of best demat account for mutual fund
- Types of mutual fund
- How mutual fund works
- Mutual fund charges
- why should you invest in mutual fund
- Best mutual funds apps in India
- benefits of investing in mutual fund.
- Are Mutual fund are taxable
- how are return earned in mutual funds
- Top 5 Best mutual fund demat account in India
How to invest in mutual fund through demat in India
All brokers and subbroker allow investor to invest in mutual funds through demat account. You can do buying and selling of mutual funds schemes just like stocks. Purchasing of mutual funds through demat is safe and risk free. For this investor has to pay brokerage charges and transaction charges to the customer.
In demat you get list of all Mutual fund schemes details from there you can select best one for your investment.
List of best demat account for mutual fund ?
Types of mutual fund
There are 4 types of mutual fund are available in the market, all mutual fund have their own features, risk and rewards.
- Money Market Funds : You can do short term investment and having less risk compare to others
- Bond Funds : Risk is high as compare to money market but reward is also high.
- Stock Funds : some Funds are risky and some funds are not risky. Its completely depend upon the selection of stocks for investment.
- Target data Funds include mix of stocks, bond and other securities investment.
Mutual fund charges :
Its depend upon the broker. All stock broker charges are different as compare to each other , so that before investing in mutual fund check with your broker first check AMC charges (Account Maintenance Charges ) and transaction fees.
Mutual fund charges start with 5 % to 7 % and every year decline if you are doing investment for 5 to 10 years.
Top 5 Best mutual funds apps in India (Discount Broker)
S.No | Mutual Fund App | Download App |
1. | Angel One | |
2. | Zerodha | |
3. | Upstox | |
4. | Samco | |
5. | Sharekhan |
Benefits of investing in mutual fund.
Investment in mutual fund have lots of benefits they offer portfolio diversification . All mutual fund carry small risk but less as compare to directly investment in shares. Through investment in mutual fund you can get benefit in different ways :
- Receive Dividends : You will receive dividends for your investment on stocks. All mutual funds shares dividend differently to the investors.
- Diversification : When you invest in mutual funds then your stock broker will invest in different securities, stocks, bonds and debt funds. It will reduce risk, if any one is not performing then other will perform, they balance each other.
- Small investment is possible : If you dont have money then you can start with 500 rs per month investment (SIP) so that you can invest regularly , also this will help you to earn good return in future.
Also Read More :
Final Conclusion: First question come in mind, Why should you invest in mutual fund . Investment in mutual fund give higher return and diversified your portfolio in different stock sectors.
Comment below in which mutual funds investment you have done.
FAQ’s
Welcome to the award-winning blog, Subbr0ker!
I’m Naveen Ekka, Here at Subbroker, I write about how to start trading carrier and make money online from stock Market.