Worried How to Buy Mutual Funds Online?

Mutual Fund NAV Online 181 views

In an era of e-transactions, you can do everything online from buying cars to opening bank accounts. Be it the booking of travel or movie tickets or the transfer of funds, online tools are now increasingly used by people across India and all over the world. But when you talk about the investment, people generally go offline with the reasons best known to them. However, they can use online tools and do the transactions in a much more convenient and seamless manner compared to the offline mode. Today, we will discuss on the ways that you can apply to buy mutual fund online.

AMC websites

You can easily do online transactions as many mutual fund or say asset management companies (AMC) are customizing their processes to serve the customer requirements. First, you are required to download the scheme form the website. Thereafter, you must fill in personal details and submit the form along with the initial cheque, Know Your Customer (KYC) letter and PAN Card photocopy. Additionally, you will have to apply for a personal identification number (PIN) to carry online transactions. Subsequently, you will be assigned a folio number and the PIN, enabling you to make transactions online. This process is the cheapest as the service comes free of cost. You will have to follow the same process while applying for various other fund houses.

Demat Account

As most of the large brokers are linked with the BSE or NSE mutual fund exchange platforms, you can log on to the online trading terminal of the broker and choose the scheme from a list of schemes on the portal. The units will automatically get credited to your demat account. Depending upon your requirements, you can make an Systematic Investment Plan (SIP) or a lump sum investment. This will incur you some charges, which may be different across different brokers. For instance-ICICI Bank imposes a charge of Rs 30 or 1.5% whichever is lower on SIP. Whereas HDFC charges a flat Rs 100 in each quarter regardless of the amount you would have invested. Some of the online selling mutual fund players in India include Indiabulls, Motilal Oswal, Kotak Street, ICICI Direct, InvestSmart Online, Sharekhan, among others.

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Independent Portals

Independent portals such as Fundsupermart and Fundsindia, which came in 2009, are catering to the requirements of mutual fund investors by facilitating online buy and sell for them at no additional cost. You will have to open an account with them and fill up the form online. Then, you should take the printout of the form, put a signature and send it along with a copy of PAN card, KYC acknowledgement to such portals. After this process gets through, you can buy mutual funds of various AMCs. As these portals have a collaboration with the major banks for online payments, you can enjoy seamless online transactions, get the tools to keep a tab on the holdings, as well as use the in-house research and analysis to build a strong investment portfolio.