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How to Invest in Mutual Funds?

Mutual Funds is usually a highly effective car to Monetary Freedom. There are a number of web sites, blogs and magazines devoted to the identical. However have you learnt completely different channels by means of which you’ll spend money on Mutual Funds?

There are primarily 6 channels

  1. Your Demat Account
  2. Via advisors/ banks and so forth
  3. On-line by means of respective Mutual Fund Websites
  4. Direct by means of Mutual Fund registrars – CAMS/Karvy
  5. Direct to Mutual Fund Places of work – by publish/bodily handing over
  6. Devoted web sites which gives varied mutual fund schemes

We take an in depth take a look at benefits & disadvantages together with the method for investing by means of every channel

Demat Account

Demat Account is smart just for individuals investing instantly in inventory markets and so not everybody would have it.


  • You should buy/ redeem a MF with click on of few buttons proper on the comforts of your property.
  • You’ve consolidated portfolio in a single place. So turns into straightforward to handle.
  • No tedious means of kind filling or giving paperwork each time you purchase MF.
  • Make investments immediately. Suppose markets fall instantly @ 2:30 then you’ll be able to make investments earlier than 3:00 to get the identical day NAV & therefore shopping for at lower cost.


  • Its the most expensive channel. Even with abolition of entry load demat accounts like Reliance Cash expenses 2.25% for getting Mutual Fund.
  • Not all schemes are supplied by all demat accounts.

Via advisors/ banks and so forth

You’ve a monetary advisor for you and you should buy from him instantly. You simply have to name him & he would accumulate the shape & required paperwork from you.


  • Simple means of funding.
  • Good channel for people who find themselves not web savvy.
  • If in case you have monetary planner they advise you good schemes.


  • Price based mostly system: It is advisable to pay your advisor both an annual payment / visiting payment or fee based mostly payment.
  • The advise is probably not in your curiosity and he might advise you funds the place he will get excessive fee. (sadly that is what occurs a lot of the occasions)

On-line by means of respective Mutual Fund Websites

It is a excellent channel & I personally want this. However the issue could be very few MF gives this facility. However then you’ll be able to all the time discover good schemes amongst them.

The method of investing on-line by means of MF websites is kind of related for all MFs.

  1. You possibly can both obtain the shape from their websites of fill it on-line (if they’ve the ability).
  2. Refill the shape & connect your attested copy of PAN Card, financial institution cheque photocopy together with the cost cheque.
  3. Refill the PIN settlement kind out there on their web site. That is needed as you would wish a PIN Quantity to log in to your MF account.
  4. Courier these stuffed varieties & paperwork to respective MF tackle, or submit it bodily to their registrars – CAMS/KArvy.
  5. In about 2 weeks you’ll obtain the PIN quantity & wholla you might be all set to take a position on-line.


  • You’ve all of the benefit of Demat account right here.
  • No fee/ payment or hidden prices.


  • the primary funding needs to be in bodily kind. So you might want to make investments by means of your advisor/ or different bodily channels to start out with.
  • All Mutual Funds have completely different web sites & completely different Pin numbers. So in case you spend money on giant variety of schemes monitoring them could be troublesome. Additionally you would wish to recollect a number of folio numbers and passwords.

Checklist of Fund Homes providing Direct On-line investments

  • HDFC
  • Reliance
  • Principal
  • Birla Sunlife
  • ICICI Prudential
  • IDFC
  • TATA
  • Quantum
  • Morganstanley
  • Kotak
  • Franklin Tempelton
  • UTI
  • Constancy
  • Bharti AXA
  • Mirae Asset
  • SBI
  • Sundaram BNP

Direct by means of Mutual Fund registrars – CAMS/Karvy

Right here you might want to obtain the shape from respective MF website & fill it up. Connect photocopy of you PAN Card & submit it bodily to the CAMS/Karvy workplace in your metropolis. The registrar would attest your PAN card. So maintain the unique PAN Card with you in case you are submitting an unattested PAN photocopy.


  • Its a direct channel so no fee in anyway.


  • It is advisable to bodily go to workplace to submit. So not viable for everybody particularly in small cities. Each time you make an funding you might want to replenish prolonged funding kind. However in case you spend money on a fund which gives on-line funding facility you’ll be able to make investments on-line subsequently.

For full listing of karvy/cams workplace & the place you’ll be able to submit your varieties for various Mutual Funds go to: http://www.moneycontrol.com/easymf/order_forms/invest_easy.php

Direct to Mutual Fund Places of work – by publish/bodily handing over

you might want to observe the identical course of as in case of submitting to CAMS/Karvy. However in case you publish it you wouldn’t ensure which day NAV would apply to your buy. NAV relevant to your funding is the day when the MF workplace receives your kind & paperwork.


  • Its a direct channel so no fee in anyway.


  • Each time you make an funding you might want to replenish prolonged funding kind.
  • It could take 2 days for postal supply so the acquisition value stays unsure.

Devoted web sites which gives completely different mutual fund schemes at one place

There are two web sites that provide this service:

  • Fundsindia.com
  • Fundsupermart.co.in

That is the latest of all channels in India & thus far essentially the most handy. I do know of solely these two websites which supply this service

you’ll be able to select anybody by taking a look at their Mutual Fund Scheme protection & different added providers you need. The method of opening an account could be very related for each of them.

  1. It is advisable to replenish a web-based kind.
  2. The stuffed up kind is then emailed to you
  3. obtain the shape out of your e mail, take a print out, and signal at related locations
  4. connect PAN Card, Financial institution Cheque photocopy, tackle proof and {a photograph} together with KYC kind and courier it to the tackle offered.


  • You get benefit of on-line funding identical to demat account however with out paying something.
  • There are different worth added providers which too comes freed from value


  • The cutoff time right here is round 2:00 (in fundsindia) & 1:20 (in fundsupermart) whereas in case you undergo direct on-line funding by means of MF websites it’s 3:00.

Notice: For all type of On-line funding you might want to have a checking account with on-line cash switch services.

Although that is the perfect channel thus far personally I want FundsIndia over FundsSuperMart as a result of…

  • Cutoff timing for fairness funds is 1:20 in case of FundsSuperMart whereas 2:00 in FundsIndia
  • You can’t make investments till you might be KYC grievance by means of FundsSuperMart when you can make investments upto Rs 50 thousand by means of FundsIndia even with out being KYC.
  • FundsIndia sends you pay as you go courier and appears to have a greater buyer care. So that you really save your courier prices too.

Conclusion: Take any channel you are feeling handy however you should spend money on Mutual Funds to succeed in your objective of Monetary Freedom!!!

Source by Amit Finwinonline

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