Learn to invest in Mutual fund online-Different medium of Investment

Do you want to invest in Mutual funds? Don't have much time to do it? Now you will be able to invest in the mutual funds through online mode. It is one of the best ways to invest and earn good returns. But before proceeding the process it is necessary to armour yourself with all the information related to it so that you won't regret later.

The mutual funds are the type of investment which can earn you high returns than putting your money in the bank which will give you less interest on your money. Even though the risk factor is involved it is better to put your money in the mutual funds investments as it is managed by the fund manager. The involvement of professional expert makes it less risky and reliable. You can invest in the mutual funds through direct plans or regular plans.

There are many ways in which the investor can make their investment using the online mode. Here are some of the way in which you can start your

Directly investing through Asset Management Companies(AMC) and start MF transactions-

The investor can directly invest in the mutual funds through the AMC. There is no involvement of transaction fee as the investment is made directly and no intermediary agents are involved. Thus, you can earn high returns. You will have to go online and register yourself with the company. You have to do all the registration by yourself. Suppose you are investing in different AMCs, you have to register separately on all the AMCs site. The steps to register yourself are as follows-

• Open the mutual fund company website.
• Select the option of “invest online”.
• Download the application form of mutual funds investment and fill all the information asked in it. Give all the personal and investment details in the form.
• Affix the cheque or DD of the desired investment amount.
• Affix the Know your customer form(KYC). If you have not submitted it earlier then you should follow the below mentioned steps-

1. Download the KYC form.
2. Put all the details and affix the ID proof, Residence proof, PAN Card and 2 photographs.
3. Now, send all the required details to the mutual fund’s customer care address as mentioned on the application form.

• The Customer care will verify all the documents and your application form. They will provide you with the mutual funds receipt after the allotment of the mutual fund units.
• You will be provided with the personal identification number( PIN) which can be used for the future transaction.

Investment through the large brokers by opening Demat account:

The Demat account can be opened with the large broker and one account is sufficient for investing in stocks and mutual funds. With the single login, you can start investing in all types of mutual funds. It is considered good for those with the long term investment plan as the large brokers are considered to be trustworthy.

However, it is not suitable for those who are planning to invest for short term. Also, it has high transaction fee. The steps to open the Demat account is as follow-

• Open the Demat account with any large broker.
• Pay them the applicable account opening fee which depends on the broker you choose. The annual maintenance fees are also charged from the investor.
• Download the application form and fill all the asked information.
• Affix the PAN card copy, KYC form along with the cheque and give it to the broker or dispatch it to the address of the broker.
• The login ID and password for the transaction will be reverted back to the investor through the post or courier. Few of them provide the online generated login and password as well.
• You can now select the units for yourself and invest in your desired schemes. You can invest in SIP or lump sum in any mutual fund scheme.
• You have to pay the transaction fee, which can differ from broker to broker. So you have to pay accordingly.

Open the mutual fund account with the independent portals-

There is another way to open your mutual fund online account that is by signing in with the independent portals. There are several such online portals that will help you in making your decision to invest in the mutual fund. These portals do not charge any transaction fee and provide the detailed analysis on the mutual fund schemes. The steps to open the mutual fund account with the independent portals are mentioned below-

• Visit the website of the desired online portal (like fundsupermart.com).
• Download the form and fill it online.
• Take the print out of the application form and affix the PAN Card and KYC form with it.
• Dispatch all the documents to the given address via courier or post.
• You will receive your login and password needed for the mutual fund transactions.

You should always remember that you are the investor and your money is at stake. You should choose the mutual fund scheme carefully and take a wise decision. Though it is better to invest in the mutual funds but still a certain amount of risk is involved. Be an informed investor and choose carefully especially if you are looking for high returns.