Diversify Your Portfolio with Mutual Funds on Sky

As a first-time investor looking to enter the Indian stock market, it’s essential to choose a platform that simplifies investment and helps you get started with minimal risk. One of the best ways to begin your investment journey is through a mutual fund, and HDFC Sky offers a range of options that cater to different risk profiles and financial goals. 

Whether you’re planning to invest via a systematic investment plan (SIP) or prefer a lump sum investment, HDFC Sky provides all the tools you need to diversify your portfolio effectively.

What Are Mutual Funds?

Mutual funds are one of the most accessible and widely used investment vehicles, especially for beginners. In simple terms, a mutual fund pools money from several investors and invests it in a portfolio of stocks, bonds, or other securities, which is managed by a professional fund manager. 

By doing so, you gain access to a well-diversified portfolio even if you’re starting with a relatively small amount. This makes mutual funds an excellent choice for those looking to enter the stock market with lower risk compared to direct stock investment.

Why Choose HDFC Sky for Mutual Funds?

HDFC Sky stock market app is designed for both beginners and seasoned investors. It offers a wide range of investment options, including equity, derivatives, commodities, and mutual funds. Here’s why HDFC Sky is an ideal choice for your mutual fund investments:

• Wide range of mutual funds: HDFC Sky offers over 2000 mutual fund schemes across various categories, including equity, debt, hybrid, and sector-specific funds. This wide selection ensures that you can diversify your portfolio according to your financial goals and risk appetite.
• Access to 29+ fund houses: The platform offers mutual funds from more than 29 asset management companies (AMCs), giving you plenty of options to choose from. Whether you’re looking for aggressive growth funds or more conservative debt funds, HDFC Sky has something for everyone.
• Simplified investment process: Whether you’re investing through SIP or in lump sum, HDFC Sky makes the process hassle-free. You can set up automated SIPs, compare up to five mutual fund schemes, and even get expert recommendations on top-rated funds.
• Zero brokerage: Unlike many other platforms, HDFC Sky charges no brokerage fees for mutual fund investments. There’s no account opening fee, no subscription charges, and no hidden commissions.
• Research and Expert Recommendations: A key benefit of HDFC Sky is access to expert research and recommendations. The platform provides insights on top-rated mutual funds, aiding beginners in selecting schemes aligned with their financial goals. It also offers performance reports, fund manager details, and sector-wise allocations.

Advanced Mutual Fund Features on HDFC Sky

HDFC Sky goes beyond just offering a wide range of mutual fund schemes. It provides advanced features that make managing your investments easy:

• Fund comparison: Compare up to five mutual funds based on critical parameters such as returns, risk levels, fund size, and top holdings. This helps you make an informed decision before investing.
• Advanced Search Filters: The app’s multiple search filters, based on fund house, category, risk, and ratings, allow you to quickly find mutual fund schemes that match your investment goals and risk tolerance.
• Portfolio tracking: Track all your mutual fund investments, including those made on other platforms, in one place. HDFC Sky provides in-depth portfolio analysis, allowing you to monitor your returns and asset allocation with ease.
• Systematic Transfer Plan (STP): This feature allows you to transfer a fixed amount from one mutual fund to another at regular intervals, enabling better liquidity and optimised returns.
• Systematic Withdrawal Plan (SWP): If you’re looking for a regular income stream from your investments, you can set up a SWP on the platform, which allows you to withdraw a fixed amount at pre-determined intervals.
• SIP and Lump Sum Investment: A key feature of HDFC Sky is its flexible investment options. You can choose between lump sum investments or SIP, with many preferring SIP for its manageable, periodic contributions that grow over time. This method also reduces the impact of market volatility by spreading out investments.
• Access to New Fund Offers (NFOs): The app makes it simple to explore and invest in upcoming mutual funds through New Fund Offers (NFOs), keeping you informed about new opportunities in the market before they officially launch.
• Save Tax with ELSS: By investing in Equity Linked Savings Schemes (ELSS) through HDFC Sky, you can save on taxes while growing your wealth. ELSS funds offer tax deductions under Section 80C of the Income Tax Act.
• Diversify with International Funds: Investing in Fund of Funds (FOFs) and international funds through the app allows you to diversify your portfolio across global markets and multiple asset classes, reducing risk and increasing potential returns

How to Open a Mutual Fund Account on HDFC Sky?

What sets HDFC Sky apart is its user-friendly interface and comprehensive features that cater to different investment strategies, whether you’re interested in short-term gains or long-term wealth accumulation. Here’s a step-by-step guide:

1. Open a demat account: To start investing, you’ll first need to open demat account with HDFC Sky. This account acts as a holding account for all your investments, including mutual funds.
2. Complete the KYC process: As part of the registration, you’ll need to complete your Know Your Customer (KYC) verification, which includes submitting documents like your Aadhaar card and PAN card. This process ensures that your account is fully compliant with regulatory norms.
3. Select your mutual fund: Once your account is active, browse through the platform to find the mutual funds that best suit your investment goals. You can filter funds based on factors like risk level, returns, and asset management companies.
4. Start investing: After selecting the fund, you can choose between a SIP or lump sum investment. SIP allows you to invest smaller amounts at regular intervals, such as monthly or quarterly, which helps in managing risk and capitalising on market fluctuations.

Conclusion

Diversifying your portfolio is crucial for financial growth. HDFC Sky simplifies mutual fund investments with zero brokerage, automated SIPs, expert recommendations, and a user-friendly app. Whether you’re a beginner or seasoned investor, HDFC Sky provides the tools to achieve your financial goals. Start by opening a demat account today.