How to Invest in Mutual Funds

You can invest in any mutual fund scheme either online (through online investment facility provided by AMCs) or offline (through any financial intermediary or directly walking in any branch of the Mutual Fund Company). Financial intermediaries can be a bank, brokerage house or third party distributor or IFAs. IFAs (Individual Financial Advisors) are AMFI certified ARN holders, who can suggest balanced portfolio suitable for risk appetite of every investor. There are few steps to follow while investing in mutual funds. Whether you decide to invest online or offline, you will require the following documents: Photograph, PAN card, Name and Address proof, Bank Account Details and KYC Compliance.

You can invest in Mutual Funds through various channels. Let's have a look at these channels and some related important information.

Investing online (through online platform)
Step 1: Visit the website and register for online transaction services. Provide necessary information i.e. Folio Number, email id and mobile registered with the folio etc.
Step 2: The F-Pin will be generated and will be sent to you in email id and on mobile registered with that folio.
Step 3: Using this F-Pin you can create your User ID and Password.
Step 4: Login using the credentials just created and start investing.
Investing offline (through application form)
Step 1: Contact a distributor or agent of mutual funds.
Step 2: Get the application form.
Step 3: Fill an application form providing necessary information i.e. Name, Address, PAN, email id, mobile number etc. This email id & mobile number will be used for further communication and also can be used to register for online transaction services.
Step 4: Attach copies of relevant documents and submit it along with a cheque or demand draft for the amount of investment.
Step 5: If applied through an agent or distributor, they would submit the application form with the cheque and all relevant documents to the mutual fund company.
Step 6: The mutual fund company then would allocate you with a folio number for the particular investment and would issue you an Account Statement.
Investing through mobile

With the advanced technology, new platforms like smart phones and tablets are being used to doing online transactions while on the move. m-Easy is one of such mobile investments facility which helps you Invest, Redeem and Switch from one scheme to another with the help of an SMS. With m-Easy you can manage your investments from any place, anytime. To know more about m-Easy click here.

Starting your SIP online

SIP is a method of investing a fixed sum, regularly, in a mutual fund scheme. SIP allows you to buy units on a given date each month, so that you can implement a saving plan for yourself. An SIP is generally preferred for an equity scheme and can be started with Rs 2500 per month. You can start your SIP online from convenience of your home with just few clicks. To know more about starting SIP online click here.

What is KYC?

As per the rule of SEBI from January 1, 2011, all those who would want to invest in mutual funds are required to be compliant with know-your-customer (KYC) norms, irrespective of amount they invest in. This means you will not be able to process any fresh MF purchase post January 1, 2011, unless you are MF KYC compliant. To know more click here.