Mutual Funds can be a powerful vehicle to get FInacial Freedom. There are several websites, blogs and magazines dedicated to the same. But do you know different channels through which you can invest in Mutual Funds?
There are mainly 6 channels
We take a detailed look at advantages & disadvantages along with the process for investing through each channel
Demat Account:
Demat Account makes sense only for people investing directly in stock markets and so not everyone would have it.
Advantage:
Disadvantages:
Through financial advisors, banks, agents etc
You have a financial advisor for you and you can buy from him directly. You just need to call him & he would collect the form & required documents from you.
Advantage:
Disadvantages:
Online through respective Mutual Fund Sites
This is a very good channel & I personally prefer this. But the problem not all MF offers this facility. But then you can always find good achemes among them.
The process of investing online through MF sites is more or less similar for all MFs.
Advantage:
Disadvantages:
List of Fund Houses offering Direct Online investments
Direct through Mutual Fund registrars – CAMS/Karvy
Here you need to dowload the form from respective MF site & fill it up. Attach photocopy of you PAN Card & submit it physically to the CAMS/Karvy office in your city. The registrar would attest your PAN card. So kee the orignal PAN Card with you if you are submitting an unattested PAN photocopy.
Advantage:
Disadvantages:
Get complete list of karvy/cams office here.
Direct to Mutual Fund Offices – by post/physically hading over
You need to follow the same process as in case of submitting to CAMS/Karvy. But if you post/courier it you would not be sure which day NAV would apply to your purchase. NAV applicable to your investment is the day when the MF office receives your form & documents.
Advantage:
Disadvantages:
Dedicated websites which offers different mutual fund schemes at one place
This is the newest of all channels in India & so far the most convinient. I know of only these two sites which offer this service
you can choose any one by looking at their Mutual Fund Scheme coverage & other added services you desire. The process of opening an account is very similar for both of them.
Advantage:
Disadvantages:
Though this is the best channel so far personally I prefer www.fundsindia.com over www.fundsupermart.co.in because…
Conclusion: Take any channel you feel convenient but you must invest in Mutual Funds to reach your goal of Financial Freedom!!!
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Thank you for sharing such a nice information All the points are really helpful. Investing in mutual fund will not be problem now after reading this article.
Very informative.
Thank you very much
Thanks! I hope this would make your MF investment easier.