Step 1: Complete KYC once
Mutual fund KYC is done once and works with every fund house. You need your PAN, Aadhaar (or another address proof), a mobile number and email, and a bank account in your name. Most apps and fund houses do it online with a video or Aadhaar OTP check in minutes. You'll also be asked to add a nominee or opt out.
Step 2: Decide the goal and the time
Write it down: "₹5 lakh for a car in 2030" or "retirement in 2050". The time to the goal decides the type of fund:
- Under 3 years → debt funds or deposits.
- 3–5 years → hybrid funds.
- 5+ years → equity funds.
Step 3: Choose where to buy
- The fund house's own website or app — direct plans.
- MF Central (run by the registrars CAMS and KFintech) — direct plans of all fund houses, plus your consolidated statement.
- Investment apps and brokers — check whether they offer direct or regular plans.
- A SEBI-registered investment adviser (fee-only advice) or an AMFI-registered distributor (paid by commission, regular plans). Check the ARN or registration number.
Step 4: Pick a fund within the category
Compare funds of the same category on: returns over 5–10 years against the category's benchmark (not just last year), how consistent they've been, the expense ratio, the fund's size and the manager's record. Avoid picking from "top returns this year" lists — last year's winner is often next year's laggard.
Step 5: Start a SIP and automate
Set a SIP date just after your salary credit and register an auto-debit (e-mandate). Increase the amount every year with a step-up SIP.
Mistakes to avoid
- Stopping SIPs when markets fall — that is when your SIP buys more units.
- Owning ten funds that hold the same shares.
- Redeeming equity funds for short-term needs; plan those with deposits.
- Investing money you'll need within a year in equity.
Mutual fund investments are subject to market risks; read all scheme-related documents carefully.
For general information only, not investment advice or a recommendation. Oxon Fintech is a loan facilitation platform, not a SEBI-registered investment adviser, bank or mutual fund distributor, and does not sell bonds, deposits or funds. Rates and rules are as checked on the date above; confirm with the issuer, bank or fund house before investing. Mutual fund investments are subject to market risks; read all scheme-related documents carefully.