Do you want to buy online mutual fund but don’t know how to go by it? Before that, it’s better for you to understand about its benefits of online investment. You may be little concerned about the online transaction. But the online transaction is not easy for everyone. There involve technicalities which you should be aware of beforehand. As you may be doing the online transaction by sitting in front of your laptop or mobile, the mutual fund online shouldn’t let you shirk the benefits that online transaction carries.
Let’s take a glimpse of benefits in detail :
Free from paperwork
The first major benefit that comes to you by investing in the online mutual fund is getting rid of physical strains of the paperwork wherein you are required to manually fill up forms, make a cheque, and comply with the KYC norms. While doing online investment, you just have to ensure your KYC is in place and thereafter you can make your investments suitably.
Investing in online mutual fund gives you full convenience. You don’t have to think about the timings, transport, and availability. The moment you decide to invest, within the click you can select to invest. There are various mutual fund schemes which you will come across your terminal or mobile interface from which you would like to invest. In this way, you will save your time and money both by doing online.
Cost of Investing
The fair approach of investing in direct mutual funds is going online. Direct mutual funds charge less from you in terms of fund management fees which can, in turn, increase your returns. This difference will become important in the longer run.
Easy comparison across several mutual funds
By simply making your login ID and password with any portal of mutual fund gives you the facility of independent research. You can assess the performance of various mutual funds scheme at one place which can help you to take a fair decision of choosing the best mutual fund scheme to invest. At the same time, you can make the decision for switch or withdrawal subsequently.
Easy Tracking of Mutual Fund
As an investor, by going online helps you track of your fund performance very easily. Whichever day and time you want you can see the exact present value of your investment, only through some clicks which you make.
Redemption or Switching Becomes Easy
Online mode can allow you to apply instantly for the redemption or switch of the mutual funds. Hence, it safeguards your precious time when it becomes a concern. In this manner, you may get your money in the account within 2 days of the online request.
Mis-selling not allowed
Mutual Fund online breach the process of intermediary which may somehow invite chances of mis-selling. Since you may not have access to any agent who can persuade you for the wrong mutual fund scheme. It depends only on your discretion to do your research and decide independently.
Investing Online in Mutual Funds
There are 4 ways of investing online in Mutual Funds :
1. Website of Any Mutual Fund House
Every fund house these days give you the provision of online investment. At any day or at any time you can visit the website of each fund house to ascertain your best pick for the online mutual fund.
- Direct plan of a mutual fund can be purchased. Direct plan levies low fund management fees, therefore, deliver better returns.
- No distributor is involved, hence no extra fees.
- After registering with the fund house further investment becomes simpler.
2. Independent Mutual Fund Portals
There are other online portals which provide you a platform for investing in any mutual fund scheme of your choice. They also educate you for doing the basic research about the mutual fund schemes. The examples of such fund portals are Fundsindia.com, fundsupermart.co.in, and scripbox.com
- Investment and tracking of all mutual fund investment can be done at one place.
- Online portals did not charge extra fees for investing platform and online services.
- You get the research facility for choosing the best mutual fund scheme. However, other free sources of research you can access e.g. valueresearchonline. com and morningstar.co.in
3. Online Brokers
The distributors working as share brokers are also involved in mutual fund online transactions. Some of the famous brokers which you may easily encounter online are ICICIdirect, KotakSecurities, ShareKhan, HDFC Securities, Indiainfoline etc.
- Buying of online mutual fund can be done from any fund house.
- There is no requirement to do KYC for every fund house. Since you have already done your KYC at the time of Demat account opening, you don’t require a KYC at the time of online mutual fund purchase.
- You have the facility to track all the mutual fund investment and stock investment at one place.
4. Bank’s Website
You may also access the bank’s website which also sells the mutual fund schemes, relatively from their group companies. SBI Mutual Fund, HDFC Bank Mutual Fund, Axis Bank Mutual Fund etc. are some examples of bank related mutual funds.
- You don’t need to give KYC documents again.
- You can buy mutual fund online through the platform of online banking.