Want to invest in Mutual Funds? Here's how to buy.

Once you have made up your mind to invest in a particular mutual fund scheme, there are multiple ways in which you can invest in it. In this article we will be discussing these modes of investing in a mutual fund scheme.

 Offline Investment

 -        By visiting your nearest mutual fund branch office

-          -        Through an Association of Mutual Funds in India (AMFI) registered distributor

 

As an initial step, you will have to complete your KYC (Know Your Customer) process by providing a copy of your PAN card, an address proof, a coloured photograph or any additional document as may be required by the fund house.

Post-completion of the KYC process, you will need to fill an investment application form and submit at the branch or to the registered distributor. The payment can be made by issuing a cheque from your bank account.

Here, it is important to note that the investments done through a distributor involves a fee that is deducted from the total investment amount. This fee is charged against the services that distributor provides, these services may include, providing you information of different schemes, guiding you in your decision making and in documentation.    

 

Online Investment

 -        Through the website of the Asset Management Company (AMC)

-          -        Through an App

With digitization taking over, investing in mutual funds has become hassle free and can be done in just a few minutes. To start with, you will need to visit the website of the AMC or the mutual fund house. Just as in the offline process, you will need to complete the KYC process online (e-KYC) by proving your PAN or Aadhar number. The information will be verified by the fund house at the backend, which generally takes a few seconds, and you will be ready to proceed with the investment on its completion. While you will find the basic details pre-filled, the bank account details, nominee and a few declarations need to be made. Next you will have to select the scheme of your choice and proceed with the payment. The transactions can be done through online bank transfers.

 Another mode of investing in mutual funds online is through the apps of mutual fund houses and other service providers such as myCAMS, MF Utility, Groww, Paytm Money etc. The process of investing through these apps are like that of applying through the website. A direct investment to mutual funds helps you save the charges which otherwise would have to be paid to distributors or agents. 

If you haven’t decided on which mutual fund scheme to invest in, we suggest reading our articles on broader classificationof mutual funds and the various categories of equity, debt and hybrid funds.