How to invest in mutual funds online

Due to the ever increasing need for convenience in investing in mutual funds, investors can now invest at the comfort of their homes. There are lots of sites which have emerged offering investors the chance of invest in mutual funds online. Most of them have unique procedures though all the procedure are somehow similar. The following is an example of how you can invest online and some of the requirement.

Searching for the relevant site online

There are lots of companies offering invest in mutual funds online, searching for the suited company is quite appropriate but for those who have no clue, they can carry out an internet search and select the website which seems most appropriate to them.


Once you have selected your company of choice, you will have to register with their on their site. Once registered you will have a Fpin generated for you. Once this is done, you will use this pin to create an account with the company. This is by having your own id and password to your account.

Generating a folio

Once you have an account, you will download common application form and any key information. For those who prefer equity schemes they can download them while for those who prefer debt scheme they can also download them. To get the folio, you will have to submit the application form having signed them to your nearest branch. You will also be required to submit a PAN card, KYC compiled status from KRA.


Once you have the KYC status and the folio number you can now invest online. There is a button from which you are supposed to click for you to be in a position of investing.

Some sites offer simple investing option where you register in their site, download the forms and invest. Since you are new investors, it is essential you have sufficient information concerning the companies, which you are going to use.

It is worthy to note that most online mutual funds’ investments are not fully online since you will have to download certain forms, which you have to sign and return them to the appropriate locations.

Due to the convenience of investing online, most investors are making the following mistakes, which in the long term are affecting their investment. They include:

Not having a plan

Most online investors are lacking a clear objective of what they are aiming to achieve through their investment. It is essential to have a plan stipulating: goals and objectives, risks , assets allocation and appropriate benchmarks

Having a short time horizon

For investors planning for a short-term investment, it is crucial to only invest in funds, which will reap maximum benefits within this time. For long-term investors, they should invest in appropriate investment and the should not keep on following how investments are performing on the short-term basis.