How to invest in mutual funds in India
The first step to how to invest in mutual funds in India is to be KYC (Know your customer) compliant. Getting KYC done for Mutual Fund is an easy process for which you need to fill up a KYC form giving your personal, communication, contact and professional details. This is to ensure that your details are recorded with the AMC and this one time process allows all your investments to be consolidated under one KYC. The KYC form should be supported with your self-attested ID and address proof.
To know more, read here about how you can do Mutual Fund KYC
To invest in mutual funds in India, there are mainly 5 ways which can be followed to invest in any mutual fund scheme of any AMC.
Through your mutual fund advisor
Investing through a mutual fund advisor is the most popular and time tested method of investment. Association of Mutual Funds in India (AMFI), an industry association of all the SEBI approved AMCs, provides licenses, known as AMFI Registration Number or ARN No.to Mutual Fund Distributors. Mutual Fund distributors or organizations which have this number are industry approved to advise and help investors on their mutual fund investments.
A good financial advisor usually provides end to end to services, including collecting KYC (Know your Customer) documents, do in-person verification (IPV) of the client, filling up the application form, collect the investment cheque and submit them for processing with the respective AMCs (Asset Management Companies). They also keep record of the investments and service the investors post sales.
Mutual fund advisors do not charge any fee from the investors as they are compensated by way of commission from the mutual fund company (AMCs) with which they are registered.
Investors who wish to make hassle free investments would find this option feasible as the mutual fund advisor takes care of the entire investment process and also provide post investment services. However, before consulting a mutual fund advisor for making investments, one must check if they have a valid ARN registration number.You can check the validity of AMFI License of the mutual fund advisor from here https://www.amfiindia.com/locate-your-nearest-mutual-fund-distributor-details
We are also a leading mutual fund advisor and you can SIGN UP with us for online transactions - https://swarajwealth.mfaccount.in/index-D.php or Call us on 0761-4078625 to start your investments. Alternatively you can also write to us https://swarajwealth.com/contact
Invest directly with the Mutual Fund companies (AMCs)
As an investor, you can invest directly with the Asset Management Company as well. If you are investing for the first time, the process of KYC registration will be carried out by the AMC itself.You can either do it by physically going to their offices or can enquire if they have a mobile application through which you can carry out investments. Once the application is downloaded you can transact with the respective AMC and invest in their schemes.
Post your investment, the AMC will send you the account statement by email and through post.
You can also visit the respective AMC website and SIGN UP for online registration.
Invest through Mutual Fund R&T agent’s websites or Mobile App
CAMS or Karvy are the two big registrars of mutual funds (R&T agent) who process the bulk of the mutual fund industry transactions, almost 95%. They also carry out the task of record keeping and scheme accounting on behalf of the mutual fund companies (AMCs).If you wish to invest through them; you can visit their office and submit the mutual fund application forms there. The process of investing with them is similar to investing through AMCs.While submitting the application you can mention your Mutual Fund Distributor’s ARN number on the application form or you can invest in direct plans of mutual funds.
These R&T agents also have launched Mobile applications, allowing investors to transact and invest in the comfort of their homes.
Invest through online portals
There are several online mutual fund portals, started by various mutual fund advisors, including us https://swarajwealth.com/ through which you can invest in mutual funds.
To invest through the online portals, the investor has to be KYC compliant. The online platform will first verify KYC registration before the investment can be transacted. Some portals can also help with KYC registration. One of the biggest advantages of investing through an online portal is that investors can view their entire portfolio of all investments in mutual funds of different AMCs, in one place and can also invest in multiple schemes through a single interface. Usually such tabulation reflects the total investment made and the current value of investments. This way the investor has an understanding of what were the total investment made and the current value of those investments. These online portals are registered mutual fund distributors and empanelled with AMFI www.amfiindia.com.
An online portal might have tools to help you planyour investments. For example – you can check a tool on our website which helps you plan your financial goal - Plan your financial goal. You can plan your financial goal on our website and start investing online after signing up on our website. You can also start a SIP investment or set up a lump sum investment from our website.
Invest through your share trading account
If you regularly invest in the stock markets and have a share trading account, you can buy units of mutual funds and keep them in the demat account just like any other shares. When you want to redeem your funds, you have to contact your share broker and redeem the funds from your demat account. If you are buying through the demat account the payment has to be made to your share broker. Likewise, when you redeem through your demat account the redemption payment will be made by your stock broker like the way he makes the payment of shares when you sell.