New or young investors find the whole process of investing in mutual funds quite interesting. They do not understand the procedure involved in opening a mutual fund account. They have to take help of brokers or staff from financial firm to do the needful. Today, it is quite easy to do invest in mutual funds online.
Options available to invest in mutual funds in India:
- Take assistance of brokers or agents: Agents help their customers complete the procedure and earn commission from financial firms. That expenditure is adjusted against your NAV. The brokers will merely act like a mediator between the mutual fund investor and the respective financial firm.
- Direct way: There are two options to invest in mutual funds in India, and they are quite better than hiring an agent. You can go directly to the bank or fill the forms online. You can save time and energy by simply following online procedure, from home or office.
Investing through online has become common in India. Little info about the process will surely help you to do it successfully. It is totally safe and your personal details are not leaked to the third party for any reason. It is much quicker way start investing in mutual funds.
How to invest in mutual funds online?
This procedure does not involve any mediator or agent. You can directly communicate directly with the mutual fund companies. This makes you independent as well as save money on hiring an agent.
This mode of investing is quite cost effective, thereby making it the best option for new and experienced investors. All you need to do is fill up the online form and submit it. You will receive all the documents by courier with a few days.
You can even invest through online portals. It is not as cheap as direct mutual fund investment. However, you get access to important details such as a list of all the mutual fund investing companies at one platform.
You can invest in mutual funds India through online Demat accounts. They charge you a small amount of fee for the same. Many online stock brokers normally offer their clients mutual funds investments. In return, they get paid good commission by the finance companies. This is then adjusted in your NAV.
What are the steps involved in investing online in India?
- First you will need to look for a reputed and reliable mutual fund company online.
- Once you find one, thoroughly go through all the terms and conditions on their website. If you fail to understand any of it, approach their online customer service.
- After being cleared about the procedure and policies, you could download the form and fill up the required details. You can pay through check, DD or have the money drawn from your account directly.
- Enclose the required documents such as proof of identity and your passport size photographs along with the application form and courier it to the mutual funds company.
- Within a few days, you will receive a PIN for your online account, along with the agreement paperwork.
Now that you know how to open and account online to start investing in mutual funds, go ahead and make some profits.