Recently One of my Old Recurring Deposits Matured & I was thinking to Invest the Money in Mutual Funds. So the first thought that came to my mind is How to Invest in Mutual funds as a beginner.
After doing a bit of Research & Visiting my Financial Advisor I found out there are 5 Ways to Invest in Mutual Funds by Offline Investment with Fund House, Offline Investment with Distributor, Online Investment with Fund House Website or Mobile Applications & Finally Using Third-Party Mutual Fund Aggregator Apps. Let us look into what each of that means & Which one is the Best for you.
Also If You are still not convinced in Mutual Funds and have a fear of Investing in Mutual Funds I Recommend you should read Benefits of Investing in Mutual Funds.
1) Offline Investment with the Fund House.
You Can Invest Directly in Mutual funds by visiting the Fund House of Schemes you wish to invest.
You need to visit the Fund house of the Scheme you want to Invest. For Ex. If you want to Invest in HDFC Mid Cap Opp Fund you need to visit HDFC Mutual Fund, Similarly for ICICI Prudential Focused Bluechip Equity Fund you need to visit ICICI Prudential Mutual Fund. You Can Search for Fund House Name with near me & you will get the address of the Fund House which is nearest to you.
You are also required to Carry following Documents with you –
1) Address Proof
2) Identity Proof
3) Cancelled Cheque
The fund house will give you an application form to fill which you need to Submit After filing up with Required Details & Necessary Documents
2) Investment in Mutual Funds with Distributor / Broker
Mutual Fund Distributor / Broker is who is authorised by Fund houses to Sell their Schemes for a Commission in Return. Distributor will also help you with the entire process of Investment & Complete Information regarding the Scheme, Guidances, Financial Advice.
The Broker will fill-up the form & send it to Fund House on your behalf. No upfront commission is to be paid to the broker. The Fund House will pay him the commission which will be deducted from your Investment Amount.
3) Mutual Fund Investment with Official Website
Another Convenient Option to Invest in Mutual Funds Directly is to Visit Offical Website of the Fund House in which you want to Invest.
All you need to do is visit the Official Website, fill up the required detail and Submit the Application. After that Online E-KYC process is to be completed by entering your PAN & Aadhar Card. The Information will be processed at the backend once the verification is done you can start investing on the Website.
Online Investing is easy & hassle-free & doesn’t require much of technical knowledge & this method is preferred by Many Investors.
The Official Website of Some Top Fund Houses are
A) HDFC Mutual Fund – https://investor-web.hdfcfund.com/register-user
B) ICICI Mutual Fund – https://www.icicipruamc.com/
C) Nippon India Mutual Fund (Previously Known as Reliance Mutual Fund) – https://www.nipponindiamf.com/
4) Mutual Fund Investment with Mobile Application
Similar to Website there is Mobile Application of these Fund Houses in which you can register & Invest Quickly.
These Apps can be downloaded on your mobile device, The Procedure is Similar you register on App, fill in necessary details do Online KYC, Once Online Procedure is completed you can Invest Easily.
You can Buy/Sell Units, Download A/c Statement, Check Valuations, See Profit/Loss on Investments, Setup SIP & Regulate Bank Mandate for the Same.
There are Some Apps which you can Invest Across various Mutual funds such as mCams & Karvy. Consolidated Mutual Fund Statement for all Mutual Funds can also be downloaded from these Apps.
5) Investments through Third-Party Apps
Similar to Fund Houses Apps there are Some Third-Party Apps which allow you to Invest in Mutual Funds Across Fund Houses & Categories.
These Apps are free & do not charge any kind of fees for Investment. Various Reports for Tax Calculations, Market Valuations, Star Rating of Mutual Funds can be done on these Apps.
These apps are user-friendly and easy to use, One Time KYC & Bank Mandate is Required to Invest in Mutual Funds. They Also provide Investment Advice for making your Investment Decision According to your Goal.
Some Popular Third-Party Apps are Groww, Kuvera & Paytm Money which can be used for Investing in Mutual Funds. You Can Start Investing with Rs.100 with Paytm Money.
#Bonus Tip – All the Above Methods are Easy & Convenient to Invest. Whenever One is Investing in Mutual Fund he should make sure that he is always investing in Direct Plans of Mutual Funds. Direct Plans are free of Commission which means better returns to you on your Investment.
All of the Above Methods can be used to Invest in Direct Plans Except when you buy from a Distributor/ Agent then you are Compulsorily Required to Buy Regular Plans in which Commission is Paid to the Agent/Distributor.
Hope that you are able to understand the Different Ways of Investing in Mutual Funds, If you have any Questions/ Queries do let us know in the comments section below & Thank You very much for Reading.