Investing offline in a direct mutual fund scheme can be accomplished by going to the branch of the fund property, or in a standard strategy via a mutual fund agent.
If you are new to mutual funds and want to invest in a fund, then you really should go for a scheme based on your investment objectives and danger tolerance. Depending on your comfort, you can invest in a mutual fund on-line or offline.
Investing offline in a direct mutual fund scheme can be accomplished by going to the branch of the fund property, or in a standard strategy via a mutual fund agent/distributor.
To invest in direct mutual funds on-line you can go to the web page of a fund property, wherein you will be necessary to full your eKYC for KYC (Know Your Customer) compliance. You can get your eKYC accomplished by submitting Aadhaar and PAN facts and then you will be capable to invest in the scheme of your decision. After that to invest in a mutual fund login as a guest or register oneself. Also, you can get your KYC completed at a KYC Registration Agency (KRA) just before investing in mutual funds.
Most recommended by business authorities is investing in mutual fund schemes via a systematic investment strategy (SIP), the greatest alternative for newcomers. Through the SIP process of investing in a mutual fund, you will be capable to invest a fixed quantity consistently in a mutual fund scheme of your decision. You can invest as low as Rs 500 per month via the SIP in any mutual fund scheme.
Investors can also invest in mutual funds via STP. STP (systematic transfer strategy) enables the investor to periodically transfer or switch a specific quantity of units from one mutual fund scheme to an additional mutual fund scheme. However, the switch can only be accomplished involving schemes of the identical mutual fund property. Depending on the market place circumstances, authorities say one could take into account an STP from an equity scheme to a debt scheme or vice versa.
Investing in mutual funds via Demat account
You can also invest in mutual funds via a Demat account via any depository participant or with your stockbroker. With a Demat account, the mutual fund units are held in the dematerialised type, which can be purchased or sold via the Demat account just like shares. The Demat account can hold stocks, mutual funds along with other securities.
With a Demat and trading account, you can obtain and sell units of mutual fund schemes. However, note that there are charges which are larger as compared to other modes of investing in mutual funds.