How to Invest in Mutual Funds? 5 Simple Steps to Invest in Mutual Funds Online 

A large number of Indian investors were unaware with mutual fund investments just a few decades back. However, the situation today is very different. Mutual funds are now viewed as a simple and easy way to invest that can assist in building wealth, with a steady increase in mutual fund investors in India over the years. So, if you're not sure how to invest in mutual funds here's what you need to know.

How to Invest in Mutual Funds: Mutual fund investments are among the simplest to make, which gives investors access to investments that are flexible, transparent, and reliable. One can purchase mutual funds in one of the two ways listed below:

1. Online mode to Invest in Mutual Funds

2. Offline mode to Invest in Mutual Funds

5 Simple Steps to Invest in Mutual Funds Online: You must comply with these following steps to know how to invest in mutual funds in via digital mode:

Step 1: Visit any one of the following websites listed below:

1. An Asset Management Company (for both direct and regular mutual fund schemes)

2. A registered investment adviser (RIA) 

3. A mutual fund distributor (for regular mutual fund schemes)

Step 2: Fill out the e-KYC (Know Your Customer) form that can be found on the website of the relevant authority. Together with the KYC form, you must digitally upload self-attested copies of the following documents:

1. An identity proof (Aadhaar card, Passport, Voter ID, or Driving Licence)

2. PAN card

3. An address proof

4. A passport-sized photograph

Step 3: As required by capital market regulator SEBI (Securities and Exchange Board of India), complete the in-person verification (IPV). You can complete the IPV in one of two ways: either by going to one of the following locations and bringing the original copies of the required documentation:

1. KYC registration agency (KRA)

2. AMC

3. Mutual fund agent/distributor

4. Mutual fund registrar

5. Karvy/CAMS office

Or, you can complete the IPV (in-person verification) by video conferencing with a webcam at a time that has been set in advance with the relevant intermediary.

Step 4: Choose a plan based on your investing horizon, risk tolerance, funding accessibility, and other crucial considerations.

Step 5: Submit the application. This can be done following the IPV, which generally takes 5-7 days.

OFFLINE MODE:

Step 1: Visit the institutions like An Asset Management Company (fund house), a bank, A Karvy/CAMS office or a mutual fund agent/distributor.

Step: 2: Submit the KYC form Together with self-attested copies of an identity proof (Aadhaar card, Passport, Voter ID, or Driving Licence), PAN card, an address proof and a passport-sized photograph.

Step 3: The SEBI (Securities and Exchange Board of India), the capital markets regulator, has ordered you to complete the in-person verification (IPV). There are 2 ways to complete the IPV. Visit one of the organisations like KYC registration agency (KRA), AMC, Mutual fund agent/distributor, Mutual fund registrar, Karvy/CAMS office or mail the original copies of the documents Or, you can complete the IPV using video conferencing with a camera at a time that has been set in advance with the relevant intermediary.

Step 4:  Choose a mutual fund plan based on your investment time horizon, risk tolerance & funding accessibility.

Step 5: Submit the application following the IPV, which typically lasts 5-7 days.

UTI Small Cap Fund: A Small Cap mutual fund product offered by UTI Mutual Fund is called UTI Small Cap Fund Direct - Growth. The fund invests 97.82% of its assets in domestic equities, of which 63.56% are small-cap stocks and 3.96% are mid-cap stocks. This is appropriate for investors seeking very high returns and wishing to invest for at least three to four years. The financial, services, materials, capital goods, and healthcare sectors are where the fund has the majority of UTI Small Cap Fund’s investments. The top 5 holdings of the fund are Brigade Enterprises Ltd., TI Financial Holdings Ltd., Timken India Ltd., Carborundum Universal Ltd., and Karur Vysya Bank Ltd.

The UTI Small Cap Fund seeks to take advantage of small-cap and particular mid-cap firms' prospects for growth. This portfolio of scalable companies has a wide range of potential expansion. The UTI Small Cap Fund pursues a bottom-up stock selection approach to choose companies with sound financials and the capacity to sustain margins over time, using an all-encompassing risk assessment framework to identify strong firms and avoid inferior stocks.

The UTI Small Cap Fund's direct plan's expense ratio is 0.53%. The minimum SIP investment amount for UTI Small Cap Fund programme is only Rs. 500.