Mutual funds are one of the best tools of wealth creation today. These are simple to invest and are made for all irrespective of your annual income. We have covered mutual funds in detail in our previous articles. Every mutual fund scheme has a direct plan and a regular plan. Today we will explore how to invest in direct plans of mutual fund schemes online.
The best place to start your online mutual fund investment is to visit the Asset Management Company (AMC) /Mutual Fund House website. We recommend you invest your money in a reputed, time tested, time proven mutual fund house. The below mentioned steps are a guide to start your first direct plan investment.
1.Create your account on the AMC website
You need to create your account with the mutual fund house/AMC. Fill up the required details online and complete the registration process.
2.KYC completion
Once you complete registration, your PAN is verified by the mutual fund house with the central database. Once they have a perfect match you can proceed with selection of the mutual fund plan. KYC completion is critical before you can begin investing.
3.Select mutual fund plan
Select the scheme you want to invest in. In the dropdown of plan type, choose ‘Direct’. Normally there are two options – Direct Dividend and Direct Growth. Select the option in which you want to invest. Remember to choose ‘Direct’ plan type. This is a very important step.
4.Enter other investment details
Once the plan is selected, you need to enter other investment details like Systematic Investment Plan (SIP) or Lumpsum, bank account details, payment mode etc.
5.Verification of details
Verify all the details that are entered. Ensure correct details are entered to avoid problems later on.
6.Payment
Make the necessary payment via the method you had chosen when filling in your details. Once done, a confirmation will be forwarded to your registered number or email ID.
7.Subsequent payments
You can set-up auto debit instructions for payment of SIP for future months. The payments will get done from your bank account automatically on a particular date each month.
Why invest in direct mutual funds online?
- It is super convenient and time saving to invest online on the AMC website. You can do it from the comfort of your home.
- The KYC is done digitally and there are no hassles if your PAN is available with the central repository like CAMS.
- Once registration is done with the AMC/mutual fund house, you can invest in multiple schemes of the AMC from your online account.
- All mutual fund houses have their mobile applications on Playstore. You can login to the app using your user ID created during registration and get details of all your transactions, portfolio summary, initiate new transactions anytime.
