How to Invest in Direct Mutual Funds Online & Offline in India

Investors can register online and make transactions, as soon as their KYC documentation is verified. If you prefer, you can also apply in person at the nearest designated office of the asset management company, fund utility or the registrar.

As mutual funds rise in popularity, the volume of transaction(s) involving them has increased by a huge margin. Consequently, transaction tracking between different asset management companies has become difficult. To remedy this, mutual funds companies have subcontracted neutral third party agencies to manage investor data.As the name implies, Registrars and Transfer Agents are responsible for registering, recording and maintaining information relating to mutual funds including purchase, sale, exchange and redemption in addition to updating personal information belonging to investors from time to time.

To invest in a direct mutual fund, you would need:

• Permanent Account Number (PAN)
• Aadhaar Number
• Bank account details
• KYC documents

As there is no intermediary involved, investors must ensure that they provide comprehensive and accurate information, as required. This relates to Know Your Customer (KYC) compliance, portfolio consolidation, application submission and nomination.This process can be completed either online or in person. However, most investors prefer to take the online option.

• Updating KYC: Updating KYC through an online portal takes only a few minutes. This information forms part of your personal profile on your system and can be used across the mutual fund ecosystem, anywhere in the country. It is important to note that this information is linked to your PAN information which is used to authenticate your KYC data.
• Registering with your preferred provider: Once the KYC profile has been created, you are ready to begin the registration process. Select the fund house that you would like to subscribe to. Next, you should update all the necessary information as required in the application form. Follow the instructions to submit the duly filled form online. The exact process of application may differ slightly from provider to provider.

• Online subscription Quite naturally, subscribing online is more efficient as it saves time and effort compared to the traditional walk-in process. The online process is easy and intuitive. It comprises:
• Offline subscription To complete an application offline, you can visit the local office of either the AMC or the Registrars. The process is largely similar, except that a duly filled application form and subscription fee is paid to the designated officer.

Next, it is time to get down to the real business, selecting the scheme and plan. You would choose between ‘Direct’ and ‘Regular’ options under the ‘Investment’ section.Further, you can choose between ‘Growth’ and ‘Dividend’ options where you can either defer payments until the end of the tenure of the investment, in case of the first option or receive regular payments at quarterly, monthly or yearly intervals. Select the one that meets your requirements best.Some of the other details you need to provide include:

• Investment Type – Subscription payment modes include lump sum, one-time or via a Systematic Investment Plan (SIP).
• Holding Type – Choose between Demat or Non-Demat account to manage the fund investment.
• RIA Code – This is applicable only if a Registered Investment Adviser is advising you on your investments.
• Payment Mode- Payments can be made either via NEFT, Net Banking, IMPS, Debit Card, Credit Card or Cheque, depending on the fund house.
• Bank Details – Typical details include the name of the bank, account type, account number, and IFSC Code, in addition to branch address and MICR code.

The final step is verifying that all the information provided is accurate and complete. You may also need to authenticate your application through One Time Password (OTP) which may be sent either via e-mail or SMS.Once the application is verified, you can complete the transaction through your preselected payment option, which will generate an automatic Transaction Reference Number which is sent through SMS and/or e-mail.

Investing in Direct Mutual Funds, either online or offline is fast and simple. Follow the instructions carefully to get yourself your very own mutual fund investment account.If you have any questions relating to your mutual funds, feel free to reach out to our experts!

The information contained herein is generic in nature and is meant for educational purposes only. Nothing here is to be construed as an investment or financial or taxation advice nor to be considered as an invitation or solicitation or advertisement for any financial product. Readers are advised to exercise discretion and should seek independent professional advice prior to making any investment decision in relation to any financial product. Aditya Birla Capital Group is not liable for any decision arising out of the use of this information.