Mutual funds have become very popular in the present times because of their attractive returns. You will find people of every age group investing in SIP or Lum Sum. If you also want to invest in mutual funds and are looking for ways to invest in mutual funds, then you will find the answer in this article.
Today in this article I will tell you how to invest in mutual funds. Also from which platforms you can invest in mutual funds.
How To Invest In Mutual Funds
If you also want to invest in mutual funds, then you will need an Aadhaar card, PAN card and a bank account. With their help, you can open your account and start investing in mutual funds. There are many ways to invest in mutual funds which are as follows –
1. Directly From AMC’s Website
You must have found this option of investing in Mutual Fund a little different. But if you have a little knowledge about mutual funds, then you can buy mutual fund schemes directly from the official website of the AMC or fund house.
Here you get the option to invest in all the mutual funds schemes of a fund house. On the official website, you have to create a new account and log in. After that you can do SIP or lump sum investment whatever you want to do. You will also find mobile apps of almost all fund houses through which you can invest.
It is worth noting here that all platforms ask for your PAN card based KYC. This is a one time process after which you can invest from any platform.
If you invest directly from the AMC’s website and have bought mutual funds from three to four different fund houses, then you may find it difficult to track your portfolio. But currently many apps will be available on the Play Store which provide you the facility to view your portfolio at one place such as- Asset Plus, Wealth Trust, Cams etc.
2. Through The Office Of The AMC
If you do not use online medium. So you can also buy mutual funds by visiting the AMC office. There you have to fill forms, submit checks etc. Many AMCs or fund houses also provide facilities by sending their agents to your home to complete all the formalities.
3. Through Agent Or Broker
If you do not want to go through the hassle yourself, you can take the help of an agent or mutual fund distributor. Mutual fund distributors/brokers act as an intermediary between the fund house and the investor.
In this the agent does all the work on your behalf. If you invest in mutual funds through an agent or broker, then you may have to go with a regular plan. In mutual fund schemes taken through a broker, you have to pay a slightly higher expense ratio.
The biggest advantage of buying mutual funds through a broker or agent is the investment advice they provide you. Also build portfolio for you.
But in the mutual fund scheme taken through the broker, you have to pay a little more commission in the form of expense ratio, which reduces your profit a little. Brokers can also get you to invest in some underperforming schemes or NFO (New fund offer) for their higher commission.
4. Through Mobile Apps
Nowadays there are many apps available in the market through which you can invest in mutual funds. Many apps give you the option of investing in both direct and regular plans.
You can invest in mutual funds on the go with any trusted app. Investing through apps is very easy. Under one time process, you have to create an account. After creating an account, you can start investing through that app. Some examples of apps are My Cams, Kfinkart, Zerodha Coin, ET Money, Paytm Money.
If this question is coming in your mind that what will happen to your money if these apps ever get closed? Friends, these apps do not keep your money with them. This app sends your money to the respective AMC through Register & Transfer.
These apps are nothing more than just a medium. All your data remains safe with the respective fund house. Suppose Zerodha Coin is closed after 10 years. Even then you can withdraw your money directly through the concerned AMC.
5. Through Bank
Nowadays many banks provide you the facility to buy or invest in Mutual Funds from the branch of the bank. You can also buy mutual funds by visiting the bank and contacting your bank.
Banks also come in the category of intermediaries in a way. Banks, being an intermediary, provide the facility to invest in mutual funds only through regular plans.
If you want to invest in a direct plan, then you will have to look for another option.
6. Through Demat Account
Demat account is also a way to invest in mutual funds which is considered the best. If you already have a demat account, check whether the broker offers the facility to invest in mutual funds. If you do not have a demat account, then you can also open a demat account.
If you open a demat account, then the KYC of your account is done by the broker. You can also buy and sell shares through a Demat account. Also, if you want, you can also buy mutual funds.
You can buy shares through Upstox as well as invest in mutual funds very easily.
Buying mutual funds through demat will make it easier to track your shares and mutual funds. If you trade in stocks, you can invest in mutual funds through your broker. It will be beneficial for you.
If you do not invest in shares, then open a demat account and invest in mutual funds, this will not be a good option. Because for having a demat account you have to pay Annual Maintenance Charges (AMC) which is going to be a waste of your time.
Conclusion
Nowadays investing has become very easy in the age of the internet. As per my opinion you should buy mutual funds either directly from AMC’s website or through any trusted app. Which provides the facility of investing in the AMC of your choice.
Hope you have liked this information about how to invest in mutual funds.