How to invest in Mutual Funds with Axis Mutual Funds: A step-by-step guide

Starting out on a new investing or financial journey can be a daunting for anyone. Be it figuring out if you have all the requirements covered, knowing where to set up an account or what to do, we’ve covered it all in this step-by-step guide to help you invest in mutual funds the right way.

If you have gotten far enough to be determined in your decision to invest, the next steps should be fairly easy to go through. Building wealth should not have to be a stressful process, and we’re here to help you ease your way into it in 4 quick steps.

Step 1: Knowing the pre-requisites

Before you get started, make sure that you have the following steps completed so that your account set up and investing journey can get started at the earliest.

• PAN Card: Your Permanent Account Number (PAN) is a mandatory requirement for any financial transaction in India, including mutual fund investments. Ensure you have a valid and active PAN card.

• Bank Account: You'll need a savings or current bank account in your name to facilitate investments and receive redemption proceeds. Ensure your bank account is KYC (Know Your Customer) compliant.

• KYC Compliance: KYC is a one-time verification process mandated by regulatory authorities to prevent money laundering and other illicit activities. If you haven't already completed your KYC, you'll need to do so. This typically involves submitting identity and address proof documents. You can complete KYC online through the Axis Mutual Fund platform or other authorized KYC Registration Agencies (KRAs).

• Understanding Your Financial Goals: Before you start investing, be clear about your financial goals. Need help? Visit our Goal Planner.

Step 2: Not sure about your investing plans? Know where to find the right and relevant information

In a world where there is an abundance of information about anything and everything, it can be confusing to find the right sources. Especially as in recent times there is a lot of AI generated information around, it can be difficult to trust anything you read on the internet. Below are key information sources for verifying any data relevant to your Mutual Fund investing plans.

In the age of information overload, sifting through data to find what's relevant can be challenging. When it comes to mutual funds, reliable information is key to making informed decisions. Here’s how to navigate the information landscape:

1. Regulatory Bodies (AMFI & SEBI): The Association of Mutual Funds in India (AMFI) is the industry body for mutual funds in India. Their website offers a wealth of information on mutual fund basics, investor awareness initiatives, distributor information, and industry statistics. The Securities and Exchange Board of India (SEBI) is the regulatory authority overseeing the Indian securities market, including mutual funds. Their website provides regulations, circulars, and investor protection guidelines related to mutual funds. These websites are your primary sources for understanding the framework and rules governing mutual fund operations in India.

2. The Axis Mutual Fund website: Here you'll find details on all our schemes, including their objectives, past performance (remember past performance is not indicative of future results), portfolio holdings, expense ratios, fund manager profiles, and scheme-related documents like the Scheme Information Document (SID) and Key Information Memorandum (KIM).

3. Scheme Information Document (SID) and Key Information Memorandum (KIM): These are legally mandated documents that provide comprehensive details about a particular mutual fund scheme. The SID offers in-depth information, while the KIM provides a concise summary of the key features, risks and other key details. Always read these documents carefully before investing.

4. Financial News Websites and Portals: Reputable financial news websites and portals often provide analysis, expert opinions, and ratings on mutual funds. Look for well-established sources with a track record of unbiased reporting.

5. Financial Advisors: If you feel overwhelmed or need personalized guidance, consider consulting a qualified financial advisor. They can help you assess your financial goals and risk profile and recommend suitable mutual fund schemes. However, ensure they are registered and have a fiduciary duty to act in your best interest.

6. Beware of Unsolicited Advice: Be cautious of unsolicited investment advice from social media or unverified sources. Always cross-reference information with official sources.

7. Know how much and where to invest: Determining how much and where to invest is crucial, and Axis Mutual Fund offers tools to help. Take the help of our SIP Calculator and goal planner on the Axis Mutual Fund website to plan your investment strategy effectively.

Step 3: Making an Account on Axis Mutual Fund

Creating an account with Axis Mutual Fund is an easy way to invest in our diverse range of schemes. Here’s a general outline of the online account creation process:

1. Visit the Axis Mutual Fund Website or App: Go to the official Axis Mutual Fund website.

2. Click on 'New Investor' or 'Login': On the top-right corner of the page, you will find a “New Investor” or “Login button” allowing you to log-in to the website.

3. Enter Your Basic Details: You will need to provide your name, PAN card details, email address, and mobile number.

4. Complete KYC Verification (if not already done): If your KYC is not already complete, you'll be guided through the online verification process, detailed in a separate section of the blog.

5. Create your Folio: After you complete the KYC process, you can log in to the website and will be redirected to a page where you will need to provide your details, which would include your Annual Gross Income slab, Tax category, and Tax status, along with Nominee and Bank Account details to complete your Folio creation.

6. Select the appropriate scheme and invest!

Once your account is successfully created and verified, you can start exploring the various mutual fund schemes offered by Axis Mutual Fund and begin your investment journey.

The KYC Process

The KYC process can be completed online or offline. You will need the physical copy of your PAN, an ID proof (this can be a masked Aadhaar, Driving License or a Voter ID card), a cancelled cheque or recent bank statement, passport sized photo (for offline processes) and address proof. This process differs slightly per investor type. If you are a resident Indian, Non Resident Indian (NRI), Minor, Hindu Undivided Family (HUF) or a Merchant Navy/Navy Personnel.

Step 4: How to Start Your SIP (Systematic Investment Plan)

A Systematic Investment Plan (SIP) is a disciplined and convenient way to invest a fixed amount of money in a mutual fund at regular intervals (e.g., monthly or quarterly). SIPs offer several advantages, including rupee cost averaging and the power of compounding. Here’s how to typically start a SIP, and the process is generally similar on the Axis Mutual Fund platform:

1. Log in to Your Axis Mutual Fund Account: Once you have registered on the Axis Mutual Fund portal, log in to your account.

2. Navigate to the 'Invest Now' or 'Start a SIP' Section: Look for options related to new investments or starting a SIP.

3. Select a Mutual Fund Scheme: Choose the Axis Mutual Fund scheme that aligns with your financial goals and risk tolerance.

4. Enter Your SIP Details: Specify the SIP amount you wish to invest regularly, the frequency (monthly, quarterly, etc.), and the date on which you want your SIP instalments to be debited.

5. Link Your Bank Account: Ensure your bank account is linked to your Axis Mutual Fund account for automatic debit of SIP instalments.

6. Confirm and Make Payment: Review all the details and confirm your SIP setup. You will get an option to invest using Net Banking, e-mandate or an auto pay set up using UPI.

Thus, by ensuring you have the necessary prerequisites and making the best use of the resources available on our website, like the SIP calculator and goal planner, you're well-equipped to make informed choices. So, take that leap, explore the possibilities, and let Axis Mutual Fund be your partner in building a secure financial future and start your wealth creation journey today.

Disclaimers:

The SIP Calculator is just a tool to help you determine your financial goal based on your inputs. Investors are responsible for their own investment decisions and may seek investment advice from their financial advisors.

This document represents the views of Axis Asset Management Co. Ltd. and must not be taken as the basis for an investment decision. Neither Axis Mutual Fund, Axis Mutual Fund Trustee Limited nor Axis Asset Management Company Limited, its Directors or associates, shall be liable for any damages including lost revenue or lost profits that may arise from the use of the information contained herein. No representation or warranty is made as to the accuracy, completeness or fairness of the information and opinions contained herein. The material is prepared for general communication and should not be treated as a research report. The data used in this material is obtained by Axis AMC from the sources which it considers reliable. While utmost care has been exercised while preparing this document, Axis AMC does not warrant the completeness or accuracy of the information and disclaims all liabilities, losses and damages arising out of the use of this information. The AMC reserves the right to make modifications and alterations to this statement as may be required from time to time.

Mutual Fund Investments are subject to market risks, read all scheme-related documents carefully.