If you are looking for a flexible way to boost your liquidity, earn high returns, yet enjoy a low lock-in period, invest in Mutual Funds(MFs). Sounds good, but not sure how to start? Fret not! You can start investing via Tata Capital’s Moneyfy app in just a few clicks! So, how exactly does Moneyfy help you become a market-savvy investor? Read on to find out.
1. It helps you build a portfolio that aligns well with your financial goals for investing
Given there are multiple MFs curated for different end-purposes with varied lock-in periods and pay-outs, you need to figure out your investment goal. If your investment goals are short-term such as creating an emergency fund, you can search for the top debt fund picks. And if you want to stay invested for the long-term to build a healthy retirement corpus, search for different equity fund options on the app.
You can even browse through other options such as balanced funds, blue-chip funds, arbitrage funds, etc. and know each mutual fund’s features in detail to understand if they suit your investment horizon, risk profile, and other requirements. Use the MF scanner to know your investment type.
2. It allows you to complete your KYC digitally
Investing in MFs require investors to share their KYC details. This can be easily done online with Moneyfy. Upload copies of documents such as copies of your PAN card, residence proof, age proof and all the other documents your investor firm asks for. As for choosing a hassle-free mode of paying for your MF, you can set up an auto-pay feature. All you have to do is select your fund and choose automatic payment through NACH mandate, eNACH, etc.
Additional Read: What is a Mutual Fund and How Does it Work?
3. It lets you make quick withdrawals
All your ultra-short duration liquid funds can be withdrawn instantly, up to Rs. 50,000. Just choose the withdrawal option, enter the desired amount, and have the money credited to your registered bank account.
Types of mutual funds in India
The table below broadly highlights how MFs are distributed in India:
|Fund type||Definition||Low-risk return||Medium-risk return||Moderate to High-risk return|
|Balanced funds||These funds invest your money in both equities, like shares and stocks and debt instruments such as debentures and bonds. The usual breakup is 40% equity + 60% debt.||✔️|
|Debt funds||These funds invest 65% of your money in government securities (gilts), corporate debentures, bonds and the rest in other money market instruments.||✔️|
|Equity funds||Also called growth funds, these largely invest your money in stocks. Equity funds aim to accomplish long-term capital growth. So, 65% of your money is invested in equity and equity-related securities.||✔️|
|Gilt funds||This type of Mutual Funds invests 100% of your money in government securities.||✔️|
|ETFs||ETFs or Exchange Traded Funds invests your money in the stock exchange. They put your money on oil futures, bonds, foreign currency, etc.||✔️|
Additional Read: How to Choose Mutual Funds?
To sum up
These are some of the popular MFs that investors opt for. However, if you wish to invest in MFs with a small amount of money rather than a lump sum, go for a Systematic Investment Plan or SIP. You can set aside a pre-decided sum every month to invest in this reasonably safe investment option.
So, why wait when Tata Capital’s Moneyfy app lets you do it all in just a few clicks! To know more about our service spectrum, click here.