A mutual fund is one of the best investment options which professionally managed investment scheme. This investment option is mainly run by an AMC (Asset Management Company) which acts as a third party for the investors. The company gets money from an investor and invests it in equity shares, money market and bonds. Each investor has a specific number of units in order to invest the amount in the fund. The fund manager manages your mutual fund plan. The manager helps you to pick the best investment strategies based on your needs. He will track the find portfolio every day and decide where to buy the shares. Generally, there are many ways to invest in mutual funds which are mentioned below:
- Direct plan
Direct investment plant is one of the ways to invest in the mutual fund. You can approach the asset Management Company and invest in direct place based on your choice. This plan has less expense ratio because you don’t have a third party to get a commission. So you can get a better rate of return.
An investor can contact a registered mutual fund distributor. It is because he will aid you to complete the needed documentation for investing. You need to invest in a regular plan and must provide a commission to the distributor.
What are the natures of investment?
Basically, there are two ways to invest in a mutual fund. You can either invest via a SIP and Lump Sum amount. In the lump-sum investment, you need to spend a considerable portion of your funds in a mutual fund. Generally, it happens when you get a massive corpus from the sale of benefits. Investing in a lump sum is a good choice but involves risk.
Below a SIP, you educate the bank to decrease the fixed sum from your savings each and every month and then it is investing in the mutual fund scheme. So you can purchase units without any hassle. Moreover, you can reap numerous benefits by investing in the SIP.
Why invest in lumpsum investment?
Lumpsum investment is one of the modes of investment that enables you to invest more money in any mutual fund scheme. It is more popular among investors. It provides numerous benefits to the investors. If you are invested in the lumpsum you can make use of lump sum mutual fund return calculator which aids you to calculate mutual fund estimated returns on the capital invested. When you invested in the mutual fund, the most indispensable feature is what kind of returns can be predictable. The lumpsum calculator is an effective and automated tool which helps you to do your investment instead of you. It helps you to calculate how much return you have if you have invested money for a fund in an easy way.
Instead of doing all the calculations manually you can do it with a lumpsum calculator. It is very simple and easy to use the calculator. It immediately gives you the returns you have earned during the period. In addition, it allows you to modify all the variables.