New Delhi: In today's jet-setting times, most financial transactions are carried out online- whether it's transferring money into your parents' account or booking movie tickets, everything is taken care of with just the click of a button. However, when it comes to investments, many people still do it the traditional way- through an agent.
Here are 3 convenient ways to buy mutual funds online
- Asset Management Company (AMC) websites: Most fund companies offer the facility to transact in mutual funds online. You first download the scheme form from the website, fill in your details and submit the same along with the initial cheque, photocopy of PAN card (Permamnent Account Number) and KYC (Know Your Customer) letter. You also need to apply for a personal identification number (PIN) for online transactions. Once you are assigned a folio number along with the PIN, all subsequent transactions in the folio can be done online using your bank account. However, you need to go through the entire procedure again if you also want to invest in other fund houses. This is the cheapest route for the investor because the facility comes absolutely free. The flip side is remembering 6-7 different PINs for various fund houses; which can be a big headache. Some of the websites are--http://www.franklintempletonindia.com/, http://www.hdfcfund.com/, http://www.icicipruamc.com/, http://www.dspblackrock.com/, http://www.birlasunlife.com/
- Brokers: Most large brokers are today linked to the NSE or BSE mutual fund exchange platforms. All you have to do is log on to the broker's online trading terminal and select the scheme of your choice from the list of schemes available on the portal. The units will be credited directly to your demat account. You can do an SIP (Systematic Investment Plan) or a lump sum investment as per your wish. The charges are nominal; however they vary from broker to broker. ICICI Direct, for instance, charges Rs 30 or 1.5% (whichever is lower) of the SIP amount, for investments below Rs 8 lakh. Lump sum investments below this limit attract a flat charge of Rs 100. For those who do not have a demat account, setting one up with a broker will involve various charges such as account opening charge (Rs 250-750), annual maintenance charges (Rs 300-550). Many online brokerages also allow you to map existing MF (mutual funds) investments with your investment account.
- Independent portals: There are independent portals like Fundsindia and Fundsupermart; which came into existence in 2009 and have been catering to mutual funds investors to buy and sell online at no extra cost. All you have to do is open an account with them, fill up a form online, take a printout of this pre-filled online form, sign it, attach a copy of your Permanent Account Number (PAN) card and know-your-client (KYC) acknowledgement and send to them. Once this is done, you can buy MFs across 41 fund houses. These portals have tie-ups with the leading banks for seamless online payments. Apart from the zero-cost advantage, these portals offer several additional benefits that provide a friendly, hassle-free experience to the investors. They also provide tools to keep track of your holdings along with in-house research and analysis to help you build the ideal portfolio.
InvestmentYogi.com is a leading personal finance portal.
Disclaimer: All information in this article has been provided by InvestmentYogi.com and NDTV Profit is not responsible for the accuracy and completeness of the same.