Today, our mutual fund market does enough justice to investors as most of the budding investors have a good idea where to or how to start investing their money. However, at times, an investor wants to enter the market and invest their money but don’t get correct guidance even when they contact an agent.
How to invest in mutual funds online?
1) AMC websites
Many mutual fund companies provide its products online with much less hassle and mostly with just a few details. This is the most economical option any investor has for investing money online as these sites don’t charge anything extra for investing.
However, for investing through these websites, you have to initially take some extra measures of submitting the application form at the collection center or funding company.
Simply download this form from the website of the respective fund house, fill in the details, gather required documents such as PAN photocopy and other KYC, and submit your application.
After receiving your folio number and PIN, you can make all the transactions online. But, you will have to follow this process every time you want to invest in a fund house or company. The KYC process may be skipped at some places, but remembering all these PINs can be quite hectic.
2) Independent portals
There are other portals like Fundsupermart and FundsIndia that offer relief to investors. These portals and websites allow you to sell and buy mutual funds online at no additional cost. You just have to create an account, which is also free, and access the pool of mutual fund schemes.
The process of buying funds from portals is very easy. You have to fill in some basic details, upload KYC and PAN card scanned copy, and other minor details for purchasing a scheme. Then you can either get them to deliver the scheme documents to you at a minimum charge or simply download the file and print it yourself.
However, if your KYC compliance is not activated yet, these portals will validate some documents and then proceed towards activating your account.
Some of the portals nowadays also have tie ups with financial institutions and banks for effortless transactions. Apart from offering free services, efficient schemes, and a unified platform, these portals are user-friendly and hassle-free for new as well as experienced investors.
Additionally, you can track your schemes and holdings, and analyze the overall investments whenever you want.
3) Broker platforms to invest in mutual funds online
If you have ever invested in stocks, then you may have noticed that some brokers offer mutual fund schemes on their websites. This facility is not provided by every broker, but most prominent brokers have tie ups with BSE and NSE exchange platforms for mutual funds.
To avail this service you just have to login or sign up to their online platform, browse the schemes, select the ones you want to buy, and proceed with the payment. However, if you are unable to access the online portal, then consider contacting your broker for activating the functionality.
Apart from offering numerous schemes to choose from, you don’t have to put in extra efforts as everything is automated and you can make transactions online.
Many of these brokers are providing this service for free, but some are also charging a nominal cost after a particular threshold amount. But, this differs for every broker.
You can easily buy mutual funds online, but, remember to read every term and condition carefully before investing your money anywhere.