How To Invest In Mutual Funds Online & Offline
Mutual funds are becoming more popular these days. There are several ways in which you can invest in mutual funds, both online and offline.
In this blog, we will be discussing how you can get started with mutual funds and talk about the entire process.
There are 14 crore mutual fund folios in the Indian mutual fund industry, according to a report from Edelweiss Asset Management. The report said that there are around 3.5 crore mutual fund investors in the country.
Thanks to the awareness created by SEBI, more and more people are opting for mutual funds in recent years. Mutual funds offer flexibility that allows investors to choose the amount they wish to invest and the tenure.
Certain types of mutual funds like ELSS Funds help you save taxes while liquid mutual funds can help you build an emergency fund.
In this blog, we will take you through how to invest in mutual funds, both online and offline. Let’s dive in!
What Are The Ways To Invest In Mutual Funds?
Here are a few ways to invest in mutual funds.
Through A Brokerage Firm
When you invest through a brokerage firm, you can get access to a wide range of mutual funds. However, you would have to pay additional fees, like transaction fees or account maintenance fees, when you invest via a brokerage firm.
Through The Fund House
You can invest in mutual funds by visiting the nearest fund house branch office. All you need to do is complete the application form and submit the required documents such as proof of address, proof of identity, canceled cheque, and passport-size photograph.
Through The Official Website
You can go to the official website of the fund house and start investing after completing e-KYC using your Aadhaar number and PAN. When you invest via the fund house’s official website, you will be able to invest only in the schemes of that particular fund house.
Through An App
There are several mutual fund apps available for investors, including SBI MF, Axis MF, Koshex, and more. The apps will help you manage your investments easily and access details from multiple fund houses on one platform.
How To Invest In Mutual Funds Online?
You can invest in mutual funds through the online mode. This is much more convenient and hassle-free than investing via the offline mode.
Choose The Right Platform
As mentioned above, there are several ways to invest online. You can choose from mutual fund company websites, brokerages, and robo-advisors. Do your research properly and find the one that suits your needs.
Complete Your KYC
If you are a first-time investor, you would need to complete your KYC to start investing. You have to digitally submit the self-attest copies of the following documents along with the KYC form
- An identity proof (Aadhar card, passport, voter ID, driving license)
- PAN card
- An address proof
- A passport-sized photograph
Complete The In-Person Verification (IPV)
You can complete the IPV through video conferencing using a webcam.
Complete Your Profile
You need to complete your profile and if you are investing through a mutual fund app, you will be asked to offer information about your investment goals, risk tolerance, and investment horizon. This information will help the app suggest mutual funds that match your preferences.
Choose A Mutual Fund Scheme
Use the platform’s search tools to find mutual funds that meet your investment goals and risk tolerance. Once you have selected a mutual fund, analyze its prospectus and other relevant information.
Enter Your Investment Details
Put in the amount you wish to invest in the mutual fund scheme and the bank account you want to use for the investment.
Review & Confirm Your Investment
Review the details to make sure they are correct. Confirm the investment and complete any additional steps required by the platform.
Monitor Your Investment
Once you have invested in a mutual fund, you can monitor its performance regularly from the platform’s dashboard. You can see how your investments are performing and see whether they are on track to achieve your financial goals.
How To Invest In Mutual Funds Through The Offline Mode?
If you have reservations about investing via the online mode, you can follow the below steps to invest through the offline mode.
Visit The Office
You can invest in mutual funds by visiting an asset management company (fund house) branch, a bank, a Karvy/CAMS office, or a mutual fund agent/distributor. Decide which mutual fund you wish to invest in and visit that office in person.
Get The Application Form – Common Application Form
You can get the common application form in person or you can download it from the website and take a printout of it. You can also get the common application form from a mutual fund distributor or your financial advisor.
Complete Your KYC
As mentioned above, if you are a first-time investor, you would need to complete your KYC to start investing. You have to submit the self-attest copies of the following documents along with the CKYC form.
- An identity proof (Aadhar card, passport, voter ID, driving license)
- PAN card
- An address proof
- A passport-sized photograph
Complete The In-Person Verification
Since you are physically present in the office, the officials will take a look at the originals of the required documents and get your in-person verification done then and there.
Fill Out & Submit The Common Application Form
Carefully fill out the common application form with your personal information, investment amount, and investment details. Submit the application form to the mutual fund company or the distributor. You may need to submit your PAN or other relevant documents. You may also need to submit a canceled cheque for bank verification.
Lump Sum & SIP
If you wish to invest in a mutual fund scheme through the lump sum mode, you would be required to submit a Common Transaction Form. Meanwhile, if you wish to invest in a mutual fund scheme via the Systematic Investment Plan (SIP) mode, you would need to submit an e-mandate form.
If you wish to invest in a mutual fund scheme through the Systematic Investment Plan (SIP) mode,, Remember, the SIP calculator can assist you in making informed investment decisions by giving you an idea of the potential returns based on the inputs provided.
Make Payment
For making the payment, you must submit a cheque or demand draft in the name of the AMC (Asset Management Company) of the desired investment amount. Once the transaction is initiated, you will be allotted the folio number for the investments made and an account statement.
Receive The Confirmation
Once you submit your application form and make the payment, the mutual fund company will process your investment and give you the confirmation. They may give you confirmation in the form of an account statement or an email confirmation.
Track Your Investment
For tracking your investment, you need to go online, even if you have made your investment offline. The mutual fund company will not send you any physical documents to tell you how your investments are performing. You can follow any of the steps below to track your mutual fund investment.
- Track with Koshex – You can create a free account with Koshex and pull your e-CAS (Consolidated Account Statement). Then, your investments will be imported into your Koshex account and you can track them easily from the dashboard.
- RTA apps – You can download any of the RTA apps and track your investments.
- AMC website – You can create an account on AMC’s official website (the AMC whose scheme you have invested in) and see how your investments are performing.
In The End…
Investing in mutual funds has become extremely easy and convenient in the past few years due to the entry of money management apps such as Koshex.
Investing in mutual funds online is easier than the offline route, as you can track your investments without any hassle. Also, when you invest in mutual funds through apps like Koshex, you can build a budget, save smartly, invest in personalized recommendations, and track all your investments from one dashboard.
We hope this article helped you understand how you can invest in mutual funds online and offline. If you wish to learn about other personal finance topics or investment instruments, you can check out our other blogs in our Blogs section or explore our Offerings section.
Also, you can create a free account with Koshex to track your net worth in real-time, save smartly, invest in personalized recommendations, build smart money habits, and more.
Check out Koshex today and take your financial game to the next level.
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