How To Invest In Mutual Funds On PhonePe 2025 (Step By Step Guide)

How To Invest In Mutual Funds On PhonePe

Mutual funds have become a popular investment option for individuals seeking to grow their wealth. With apps like PhonePe, investing in mutual funds has become more accessible than ever. In this guide, we will walk you through the step-by-step process of investing in mutual funds on PhonePe in 2025. Whether you are a beginner or an experienced investor, this simple guide will help you get started.

Why Invest in Mutual Funds?

Mutual funds pool money from multiple investors and invest in a diversified portfolio of stocks, bonds, and other securities. Here are a few reasons why mutual funds are a great investment option:

1. Professional Management: Fund managers handle investments, ensuring optimal returns.
2. Diversification: Your investment is spread across various securities, reducing risk.
3. Flexibility: Choose from various funds based on your financial goals and risk appetite.
4. Liquidity: Easy to buy and sell mutual funds as per your needs.

Now, let’s explore how to invest in mutual funds using the PhonePe app.

Step 1: Download and Install the PhonePe App

If you haven’t already, download the PhonePe app from the Google Play Store or Apple App Store. Install the app on your smartphone and sign up or log in with your credentials.

Step 2: Complete Your KYC Process

To invest in mutual funds, completing the Know Your Customer (KYC) process is mandatory. Here’s how you can complete it on PhonePe:

1. Navigate to the Investment Section:
   • Open the PhonePe app.
   • Tap on the “Investments” or “Mutual Funds” section on the homepage.
2. Complete Your KYC:
   • Provide your PAN Card details.
   • Upload your Aadhaar card or another government-issued ID for verification.
   • Verify your mobile number linked to Aadhaar through OTP.
3. Bank Account Linking:
   • Enter your bank account details.
   • PhonePe will initiate a small transaction to verify your account.

Step 3: Explore Mutual Funds on PhonePe

Once your KYC is complete, you can explore the various mutual funds available on PhonePe. Here’s how:

1. Go to the Mutual Funds Section:
   • Tap on the “Mutual Funds” option under the investments tab.
2. Filter and Search Funds:
   • Use filters like risk level, investment type, or fund category (e.g., equity, debt, hybrid).
   • Search funds based on your financial goals (e.g., tax-saving ELSS funds, high-return equity funds).
3. Check Fund Details:
   • Read the fund’s performance history.
   • Review the expense ratio, returns, and fund manager details.

Step 4: Choose the Right Mutual Fund

Selecting the right mutual fund is crucial for achieving your financial goals. Consider the following factors:

1. Investment Goals:
   • Short-term goals: Choose debt funds or liquid funds.
   • Long-term goals: Opt for equity funds.
2. Risk Appetite:
   • Low risk: Debt funds or fixed-income funds.
   • High risk: Equity funds.
3. Fund Performance:
   • Analyze the fund’s past 3-5 years’ performance.
   • Compare it with its benchmark index.
4. Expense Ratio:
   • Lower expense ratios mean higher returns.

Step 5: Start Your Investment

Once you’ve chosen the mutual fund, follow these steps to start your investment:

1. Select the Fund:
   • Tap on the mutual fund you want to invest in.
2. Choose Investment Type:
   • Lump Sum Investment: Invest a one-time amount.
   • SIP (Systematic Investment Plan): Invest a fixed amount periodically (e.g., monthly).
3. Enter Investment Amount:
   • Specify the amount you want to invest.
4. Payment Method:
   • Use your linked bank account or UPI ID for the transaction.
5. Confirm and Submit:
   • Review the investment details and confirm.
   • PhonePe will process your payment and allocate the units.

Step 6: Track Your Investments

Tracking your mutual fund investments is essential to ensure they align with your goals. PhonePe makes it easy:

1. Go to Investments Section:
   • Open the app and navigate to the “Investments” tab.
2. View Portfolio:
   • Check the performance of your mutual funds.
   • View current value, returns, and other details.
3. Set Alerts:
   • Enable notifications for SIP payments and fund updates.

Step 7: Redeem Your Investments

When you’re ready to redeem your mutual fund investments, follow these steps:

1. Select the Mutual Fund:
   • Go to your portfolio and tap on the fund you want to redeem.
2. Choose Redemption Amount:
   • Redeem the full amount or a specific portion.
3. Confirm the Redemption:
   • Review the details and confirm.
   • The amount will be credited to your linked bank account within a few days.

Tips for Successful Mutual Fund Investments

1. Start Early:
   • The earlier you start, the more time your investment has to grow.
2. Invest Regularly:
   • Use SIPs to build wealth over time.
3. Diversify Your Portfolio:
   • Spread investments across different asset classes.
4. Review Periodically:
   • Monitor and rebalance your portfolio based on market conditions.
5. Stay Patient:
   • Avoid making impulsive decisions based on market volatility.

Conclusion

Investing in mutual funds on PhonePe is a seamless and user-friendly process in 2025. By following this step-by-step guide, you can start your investment journey and achieve your financial goals. Remember to research thoroughly, choose the right funds, and stay committed to your investment plan.

With the convenience of apps like PhonePe, growing your wealth has never been easier. Start today and take a step closer to financial independence.

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