How To Invest in Mutual Funds Without The Paperwork?

Arun, a salaried class person, wanted to invest his money into mutual funds as a means to increase his wealth. However, he was unsure of how to proceed with it. As is the norm, he contacted an AMC and asked about the proceedings. He got briefed by the investment advisor about everything, starting from the funds to the advantages he can claim with the investment.After research, he chose a fund of his choice. But that was a mere start. There came the lethargic process of documentation and paperwork. This made Arun think of mutual funds and question himself,‘Are these hassles worth it?And more importantly, like Arun, should the sight of paperwork instil fear in you when going for a mutual fund?

Thankfully the answer is a resounding 'yes'. With the advent of technology, you can eliminate the entire chain of paperwork and make it a hassle-free process with just a simple click. There are now digital means offered, where you can register and get going with the mutual funds. Here's how paperless investment is a readymade solution for today:

• Name
• Address Proof (Aadhar, Voter ID card)
• Identity Proof (PAN, Passport, Aadhar)
• Residential Category
• Email id/ Phone Number

• Step1 : Start by creating an account. For this, you will have to provide the below-mentioned details:
• Step 2: Once the basic registration is done, select the type of fund you want to invest in. You can choose from many options offered by the fund house. You can also find support or technical guidance for the know-how of the fund type.
• Step 3: Choose between the Lumpsum or SIP payment option. A lump sum will require a one-time payment from your end, while SIP will allow you to contribute every month to the fund. Choose accordingly as per your choice.
• Step 4: Verify the details and complete the payment for the selected fund. Once done, your investment will be up and running.

• Step 1: Look for the app of your AMC in the app store and download it.
• Step 2: Register yourself via the app by filling out the required fields. The basic details for requirements remain similar to the one required via web registration.
• Step 3: Select the desired mutual funds. You can overview multiple funds from plenty of fund houses at a single place via your app. This will give you a great variety to select from and options to prefer the one based on your risk profile.
• Step 4 : Confirm the details and make the payment to start your investment journey.

• Invest in Mutual Funds via Official Website: AMCs or fund houses these days offer digital services for investing in mutual funds . Website is one of those ways. Just open the website of your preferred AMC and proceed with the instructions. Here’s a step by step guideline for it:
• Invest in Mutual Funds via App: Many AMC's have their dedicated app available on the app store, allowing you to invest in mutual funds with a simple touch of your fingers. Here’s how you can do so:

Though the investment has been made easier with the elimination of paperwork and approvals, there still requires a few requisites to consider whenever you’re investing. The below-mentioned pre-requisites can help you in finding the right mutual funds:

• Identify your goals Are you looking to invest to earn long-term wealth or to meet your financial goals? Are you planning to create a corpus for your retirement or child’s education or home later on in your life? Identifying these early can help you plan your investment in the right manner.
• Consider your Risk Appetite Define your risk-appetite in the brackets of high, medium, low. This will help you to pick the right funds. If you have a high-risk capacity, you can opt for high-return potential funds or else opt for more moderate funds with a medium-to-low risk quotient.
• Evaluate the Fund Manager Look to see if they have provided consistent or better results than the market returns of the benchmark index. Most importantly, look at their past track record.
• Entry and Exit Fees The fund houses charge money to the investor in the form of fees. These fees can vary depending on the type of investment and the package. Always be sure to account for such fees beforehand going into investment. Usually, the charges are front end or entry fees, which are to be paid when you start your investment. Similarly, there's an exit charge or a back-end charge where you have to pay for exiting the fund before time. Consider these as they may hit on your returns.

Investing in mutual funds has never been as easy as it is at present. With the advent of modern-day technology, you can invest in mutual funds without going through any hassle of paperwork. This can help you invest with a simple click or a touch from the confines of your home or office.

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.