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How to invest in mutual funds online

When it comes to investments, mutual fund has become a buzz word and investment in mutual funds is becoming very popular among the investors. However, a large number of investors are still confused about how to invest in mutual funds online.


With the advent of digital platforms and mobile apps, investors can find it easy to invest online in mutual funds compared to the traditional way of investing by filling up the application forms and submitting it along with a cheque for the investment amount etc. Online investment options have made life easier for the investors. There are many ways to use the digital platform or mobile apps for investments, for example – you can invest a lump sum amount in the mutual fund schemes of your choice, and can also make additional purchase in your existing schemes or even choose to start a paperless SIP.


Let us now see the step by step process of how to invest in mutual funds online


Please note that to invest in mutual funds either through SIPs or lump sum, KYC is a mandatory requirement. To make a mutual fund KYC, your address proof, Aadhaar Card and PAN Card etc. is a mandatory requirement. Here are the steps that one need to follow -


Step 1: Keep ready the necessary documents


In order to invest in mutual fund SIP online, some basic documents like PAN card, an address proof in the form of driving license/bank statement/utility bill, a passport size photograph, Aadhar Card and cheque copy for inputting the bank details etc. is required.Having an Aadhaar number simplifies the process as it also works as an address and identity proof.


Step 2: Are you KYC compliant


First of all, it is mandatory to comply with the mutual fund Know Your Customer (KYC) requirements to invest in mutual funds. You can get this done through eKYC using the Aadhar Card. For this one-time exercise, you need to provide the Aadhar number and the basic details like name, date of birth, mobile number, address etc. gets pre-filled on the screen. You have to fill rest of the details and upload a copy of PAN. However, please note that you can invest only upto Rs 50,000 per annum per AMC if you have done an e-KYC.


Read in details how you can do KYC for mutual funds


However, if you do not want to do an e-KYC, and instead opt to do a regular online KYC by filling up the necessary details online and by uploading the necessary documents. However, a video call is required for IPV (In-Person-Verification) to confirm the details provided by you. All the online websites including the mutual fund company (AMC) websites and the R&T agents (Registrar & Transfer agents) provide this facility when you are making online KYC.


Step 3: Provide necessary details on the website


As you are done with two steps – Organizing the necessary documents and KYC - you now have to follow the steps mentioned below to start a mutual fund SIP online.


You can visit the website of the fund house (AMC)in which you want to invest. There is a 'Register Now' or a 'New Investor' link in the AMC website, where the investor need to provide personal details, nominee details, bank details and answer few FATCA questions. Post this a User Id and password is generated for transacting online.


You can also register with us for online transaction https://swarajwealth.mfaccount.in/index-D.php


Step 4: Decide the investment amount and scheme


This again is an important step, where the investor has to specify the SIP amount.


If you are starting a SIP, most of the AMCs provide an online SIP calculator to help the investor to know the amount to make a decision based on the financial goal, and how much to invest daily/ monthly/weekly to accumulate the desired goal corpus. You can invest accordingly by knowing the amount with the help of the online calculator.


Did you know that you should invest in mutual funds based on your risk profile and investment horizon


If you have already decided the SIP amount or know the exact lump sum investment amount then you can straightaway fill up the investment amount in the box provided. You should select the scheme along with the plan and option. You can opt either for growth option, dividend payout option or dividend reinvestment option. Please note that you cannot opt for dividend reinvestment option if investing in ELSS schemes.


Once the decision is finalized with regards to the scheme name, plan and option, you should select the SIP date, if investing through SIP. Did you know which are the best mutual funds for your SIP


How to select the best scheme for your SIPs or lump sum investments? Our research on Top and consistent mutual fund performers can help!


Step 5: Submit the transaction


Once you have filled in all the details required in the form and submit the payment transaction online, it is submitted to the AMC. The AMC sends an acknowledgement through email and SMS confirming the transaction.


Now that you know how to invest in mutual funds online, why do not you opt for the same and make your investments hassle free!


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