How to purchase mutual funds

As a new investor, it is very essential that one learn all the possible ways of investing and also what to do and what to avoid. The following is a description of how to purchase mutual funds and some of the avenues of purchasing mutual funds.

Investing offline

When investing offline, you will first contact an agent of the mutual fund or a distributor. This person will issue you with an application form. You will fill this form by providing the necessary information which includes: address, name , mobile number among others. After you have filled the forms in the right manner, you will have to attach copies of relevant documents and the cheque before submitting them to the distributor or the agent of mutual funds. The distributor or agent will then send the relevant document to the mutual fund company. The concern mutual fund company will then allocate you a folio number for the particular investment and issue you an account statement.

Investing Online

AMC website

Through this websites, you will find that most companies offer their funds at the click of a button. This is one of the cheapest way for investors to invest in mutual funds since it is totally free. When you are a first time investor. You are mandated to visit the fund house or even collection center for you to submit your application form. First of all you will have to download the forms from respective websites, fill in the necessary details and submit this form alongside the initial cheque, KYC letter and a photocopy of your PAN card. You will also need to apply for a personal identification number. This is used during online transactions.

Broker platform

For individuals who have an online trading account for stocks, they can directly buy mutual funds through this channel if the broker offers such a service. A lot of large brokerage are currently linked to the NSE or even the BSE mutual exchange platform. For an investor willing to use this method, they should log on to the broker online trading terminal and then select their scheme of choice. At times you will have to ask your broker to activate them. Most brokers are currently providing this service for free. You don’t have to incur any transaction cost while using this method.

Independent portals

There are a variety of independent web portal e.g. FundsIndia and Fundsupermart. This usually caters for new investors by allowing them to buy and sell mutual funds on an online platform. For you to use this service, you will have to create an online account with one of these independent portal and from here you will get access to lots of mutual funds. This process is usually simple and usually asks for basic detail e.g. a copy of your PAN card and a canceled cheque of your bank account. An investor can opt for the application documents to either be delivered to you at a normal cost or print them from the concerned website. Once you have filled the documents and forms appropriately you can submit them through a prepaid mailer