How to buy mutual funds online? Here is all you need to know
Direct investments in the stock market can be risky, but investing through mutual funds is comparatively safer and easier.
Direct investments in the stock market can be risky, but investing through mutual funds is comparatively safer and easier. Mutual funds are the pooled investments accumulated from different individuals by AMCs or financial institutions, which they invest directly in stock markets. These funds are managed by the professional experts and certified individuals. There are plenty of options for investing in mutual funds like Systematic Investment Plans (SIP), Lumpsum options and other periodical plans. The investments in mutual funds also allow individuals to diversify their portfolios by giving them options like equity funds, liquid funds, debt funds etc.
The mutual funds can be bought online via independent websites, AMC portals or the broker platforms. The online options allow you to invest without any additional cost and pain, You can invest your money on your own from. Here are all the ways explained:
1. AMC portals:
You can invest your money on the websites of these AMCs from your house. These Asset Management companies like HDFC securities, ICICI Direct, SBI capitals etc offer various facilities online at the cheap prices. Initially, you need to physically go the fund house or collection centres of the Registrar and Transfer Agents (RTAs) to submit your application form. You can download the scheme form from the website and submit the same after filling all the details along with the other documents like first cheque, photocopy of PAN card and KYC compliance. You can start investing in the mutual funds of that fund house after you are assigned with a PIN and Username.
However, you need to repeat the entire process again if you want to invest in other fund houses. Except the KYC compliance, you will have to repeat the all other things. It is difficult to remember 5-6 passwords for each fund house.
2. Mobile applications/Independent websites:
You can also invest through various 3rd party mobile applications for both android and iOS smartphone users. There are various mutual funds applications like Paytm Money, myCAMS, KTrack, FundsIndia etc. You can add your bank details to the app and start investing. These apps are easy to use and secured enough to invest your money. There are number of applications available on play store that allow you to invest in mutual funds of various fund companies.
They have built in calculators which help you calculate your returns and losses. These apps also allow you to compare various funds, so that you can chose the best for you. However, if your bank does not have a tie up with these independent apps, you might not be able to access your net banking through them.
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3. Broker platforms:
If you already have an online broker service that helps you invest in the stock markets, you can approach the same platforms to start mutual funds. The brokers also allows you to invest in various mutual funds schemes. You can start a SIP and invest in lumpsum options through these platforms. The brokers do not take any additional charges to invest in mutual funds except some necessary commissions. You can connect your bank account to initiate the SIP or periodical investments online.
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