In modern days, one can see a significant increase in economic fraud due to the increase in the greed of investors. There are many people who want more return on their amount invested and become the victim of economic fraud.
Here the investors must understand that the rate of return and risk move together only. Hence if one wants more return on his investment, he has to take more risk, and if he is not willing to take more risk, he has to satisfy with little return.
Investment in a mutual fund:
As per the experts, a mutual fund can be considered as a tool or avenue of investment where the risk is comparatively moderate or low. The direct mutual fund investment can help one save on the front of charges also. One can go for any company in the market where he can invest even a little amount like 1000 rupees. The investment in this option can grow over a period and hence, one must not go for it if he looks for a good return in the short term.
If one wants to have an investment in the direct mutual fund, he can go for the same via online or offline mode. In online mode, the process is very easy, and one can carry out the same with the help of an app or a site. Here one needs to furnish a few of his details and soft copy of documents that can help him to complete the process of KYC.
In offline mode, the investor has to provide the hard copies of all the documents with the application form to an agent with a cheque of the amount one wants to invest. There can be a lump sum investment or systematic investment where one can pay monthly to have some units on his name.
There are various terms for which one can invest the fund in the market. For a mutual fund, to have a good return, one must keep the fund for a certain period. The fund can perform well depending on the market condition.
In the short term that is within one year, one may not be able to get a good return. In the term of 1 to 3 years, one can see the growth of the fund, and in case one keeps the fund for more than 3 years he can surely have a handsome amount as his return on the invested amount.
One can check the past performance and return of the mutual fund in which he is interested in investing as the system here is completely transparent. The NAV, charges, total units available, investment of the fund in options, availability of options and the options one has chosen can be easily known from the statement of the mutual fund company that is issued to each investor at a regular interval.
One can also call on the call centre and find the NAV as well as the status of his portfolio, which can prove helpful to him to decide if he needs to keep the investment or withdraw the amount.