Ways of Buying Mutual Funds in India

The mutual fund has started gaining popularity in recent years. Even if you’re a first-time investor, you can begin the journey by reaching out to the required touchpoints. Unlike in the earlier days, when there were no avenues to contact potential customers, technological advancements have changed the dynamics.It is even more convenient, straightforward, and simple. If you’re intrigued about investing, here are ways youcan buy mutual funds:

1. Agents Reaching a financial broker or agent is the common way through which you can initiate the investment. The advantage of investing through an agent is you can call the person at home, fill the form, and submit it with the required documents. You do not have to visit the mutual fund’s office for formalities.It is important to note that mutual fund is regulated by the Securities and Exchange Board of India that mandates mutual fund agents to adhere to the guidelines. As an investor, the agent should highlight the risk factor, maintain the confidentiality of the deals, and abstain from assuring returns.One of the drawbacks of investing through an agent is you have to pay a commission, which increases the overall management cost of a mutual fund.
2. Asset Management Companies When you buy mutual funds through an Asset Management Company, you can be assured of transparency in choosing mutual funds, risks, objectives, fund assistance, or any other factor. Usually, if you’re visiting an AMC as a first-time investor, the company lays a major emphasis on ID proof and KYC to initiate the process.Once this is complete, you have the freedom to invest in any mutual fund scheme. You can also make online investments without reaching out to AMC. In some cases, companies also send their representative at home to help with our investments.
3. Banks Several banks also allow you to invest in a mutual fund as they have tie-ups with various mutual fund companies. If you’re interested, you can visit your nearest bank to know how to buy mutual funds.
4. Online portals Today when business is online, you can even make an investment online. There are various mutual fund aggregators where you will find a plethora of mutual funds. To begin with the process, you need to open an account with the aggregator, fill the form, and submit the necessary documents.By comparing different fund options, you can decide to buy/ invest directly from the portal. However, if you’re investing for the first time, it is always advisable to seek financial advice.
5. Demat and Trading account If you are a demat account holder, you still have the option to buy mutual funds. One of the advantages of investing through a demat account is that you can manage and track investment from a single platform. However, when you’re using demat, you will have to pay a commission amount just like you pay if you’re investing through an agent.To invest through the Demat account, you need to login into your account, select the scheme, and complete the payment. The units get directly credited to your existing account.
6. Apps You can also choose to buy mutual funds online through apps as it is hassle-free. You can open your account in minutes if you have digital copies of your documents. It is also easy to manage or track funds online. It is convenient to carry out transactions as such apps/websites have tie-ups with major banks to facilitate fast fund transfer.
7. Others You can also buy mutual funds through CAMS or KARVY Investor Centre. You simply need to fill a form and produce the necessary documents to start with the investment. You can apply for the same via CAMS official website.

A majority of people refrain from investing in mutual funds as documentation is a daunting task, and they find the process complicated. The investment needs to be done thoughtfully with the right asset allocation and diversification so that the risk is reduced.One thing is if you reach the right channel for buying units, you can get the best deal. Before investing in mutual funds, make sure you’re“Know Your Customer” or KYC-compliant, without which you are not eligible for the mutual fund investing.You can apply for KYC at any financial broker, reputed fund houses, CAMS, or KARVY investor centre. Once you’re done with the KYC, you can approach any fund house for investment. It is best to buy mutual funds online as it is effortless. You can easily buy mutual funds, track investments, transfer money, or download investment statements online quite easily.

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.