{"id":470,"date":"2011-09-19T13:48:00","date_gmt":"2011-09-19T13:48:00","guid":{"rendered":"http:\/\/www.apnaplan.com\/?p=470"},"modified":"2014-06-17T17:24:23","modified_gmt":"2014-06-17T11:54:23","slug":"how-to-invest-in-mutual-fund","status":"publish","type":"post","link":"https:\/\/www.apnaplan.com\/how-to-invest-in-mutual-fund\/","title":{"rendered":"How to invest in Mutual Fund?"},"content":{"rendered":"<p style=\"text-align: justify;\">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 <strong>different channels through which you can invest in Mutual Funds?<\/strong><\/p>\n<p style=\"text-align: justify;\">There are mainly 6 channels<\/p>\n<ol>\n<li>\n<div style=\"text-align: justify;\"><strong>Demat Account<\/strong><\/div>\n<\/li>\n<li>\n<div style=\"text-align: justify;\"><strong>Through financial advisors, banks, agents<\/strong><\/div>\n<\/li>\n<li>\n<div style=\"text-align: justify;\"><strong>Online through respective Mutual Fund Sites<\/strong><\/div>\n<\/li>\n<li>\n<div style=\"text-align: justify;\"><strong>Direct through Mutual Fund registrars &#8211; CAMS\/Karvy<\/strong><\/div>\n<\/li>\n<li>\n<div style=\"text-align: justify;\"><strong>Direct to Mutual Fund Offices &#8211; by post\/physically hading over<\/strong><\/div>\n<\/li>\n<li>\n<div style=\"text-align: justify;\"><strong>Dedicated websites which offers various mutual fund schemes<\/strong><\/div>\n<\/li>\n<\/ol>\n<p style=\"text-align: justify;\">We take a detailed look at advantages &amp; disadvantages along with the process for investing through each channel<\/p>\n<p class=\"tip\">Demat Account:<\/p>\n<p style=\"text-align: justify;\">Demat Account makes sense only for people investing directly in stock markets and so not everyone would have it.<\/p>\n<p style=\"text-align: justify;\"><strong>Advantage:<\/strong><\/p>\n<ul>\n<li>\n<div style=\"text-align: justify;\">You can <strong>buy\/ redeem<\/strong> a MF with click of few buttons right at the <strong>comforts of your home<\/strong>.<\/div>\n<\/li>\n<li>\n<div style=\"text-align: justify;\">You have consolidated investment portfoilo in one place. So becomes <strong>easy to manage<\/strong>.<\/div>\n<\/li>\n<li>\n<div style=\"text-align: justify;\">No tedious process of <strong>form filling<\/strong> or giving documents every time you buy MF.<\/div>\n<\/li>\n<li>\n<div style=\"text-align: justify;\"><strong>Invest instatly.<\/strong> Suppose markets fall suddenly @ 2:30 then you can invest before 3:00 to get the same day NAV &amp; hence buying at lower price.<\/div>\n<\/li>\n<\/ul>\n<p style=\"text-align: justify;\"><strong>Disadvantages:<\/strong><\/p>\n<ul>\n<li>\n<div style=\"text-align: justify;\">Its the <strong>most costly online channel.<\/strong> Even with abolition of entry load demat accounts like Reliance Money charges 2.25% for buying Mutual Fund.<\/div>\n<\/li>\n<li>\n<div style=\"text-align: justify;\">Not all schemes are offered by all demat accounts.<\/div>\n<\/li>\n<\/ul>\n<p class=\"tip\">Through financial advisors, banks, agents etc<\/p>\n<p style=\"text-align: justify;\">You have a financial advisor for you and you can buy from him directly. You just need to call him &amp; he would collect the form &amp; required documents from you.<\/p>\n<p style=\"text-align: justify;\"><strong>Advantage:<\/strong><\/p>\n<ul>\n<li>\n<div style=\"text-align: justify;\">Easy process of investment.<\/div>\n<\/li>\n<li>\n<div style=\"text-align: justify;\">Good channel for people who are not net savvy.<\/div>\n<\/li>\n<li>\n<div style=\"text-align: justify;\">If you have a good finacial planner they advise you good schemes. (Remember IF!)<\/div>\n<\/li>\n<\/ul>\n<p style=\"text-align: justify;\"><strong>Disadvantages:<\/strong><\/p>\n<ul>\n<li>\n<div style=\"text-align: justify;\"><strong>Fee based system<\/strong>: You need to pay your advisor either an annual fee \/ viting fee or commission based fee.<\/div>\n<\/li>\n<li>\n<div style=\"text-align: justify;\">The advise may not be in your interest and he may advise you funds where he gets high commission. (unfortunately this is what happens most of the times)<\/div>\n<\/li>\n<\/ul>\n<p class=\"tip\">Online through respective Mutual Fund Sites<\/p>\n<p style=\"text-align: justify;\">This is a very good channel &amp; <strong>I personally prefer this<\/strong>. But the problem not all MF offers this facility. But then you can always find good achemes among them.<\/p>\n<p style=\"text-align: justify;\">The process of investing online through MF sites is more or less similar for all MFs.<\/p>\n<ol>\n<li>\n<div style=\"text-align: justify;\">You can either download the form from their sites of fill it online (if they have the facility).<\/div>\n<\/li>\n<li>\n<div style=\"text-align: justify;\">Fill up the form &amp; attach your attested copy of PAN Card, bank cheque photocopy along with the payment cheque.<\/div>\n<\/li>\n<li>\n<div style=\"text-align: justify;\">Fill up the PIN agreement form available on their website. This is necessary as you would need a PIN Number to log in to your MF account.<\/div>\n<\/li>\n<li>\n<div style=\"text-align: justify;\">Courier these filled forms &amp; documents to respective MF adress, or subit it physically to their registrars &#8211; CAMS\/Karvy.<\/div>\n<\/li>\n<li>\n<div style=\"text-align: justify;\">In about 2 weeks you would receive the PIN number &amp; wholla you are all set to invest online.<\/div>\n<\/li>\n<\/ol>\n<p style=\"text-align: justify;\"><strong>Advantage:<\/strong><\/p>\n<ul>\n<li>\n<div style=\"text-align: justify;\">You have all the advantage of Demat account here.<\/div>\n<\/li>\n<li>\n<div style=\"text-align: justify;\">No commission\/ fee or hidden costs.<\/div>\n<\/li>\n<\/ul>\n<p style=\"text-align: justify;\"><strong>Disadvantages:<\/strong><\/p>\n<ul>\n<li>\n<div style=\"text-align: justify;\">the first investment should be in physical form. So you need to invest through your advisor\/ or other physical channels to start with.<\/div>\n<\/li>\n<li>\n<div style=\"text-align: justify;\">All Mutual Funds have different websites &amp; different Pin numbers. So if you invest in large number of schemes tracking them would be difficult. Also you would need to remember multiple folio numbers and passwords.<\/div>\n<\/li>\n<\/ul>\n<p style=\"text-align: justify;\"><strong>List of Fund Houses offering Direct Online investments<\/strong><\/p>\n<ol>\n<li>\n<div style=\"text-align: justify;\">HDFC Mutual Fund<\/div>\n<\/li>\n<li>\n<div style=\"text-align: justify;\">Reliance Mutual Fund<\/div>\n<\/li>\n<li>\n<div style=\"text-align: justify;\">Principal PNB\u00a0Mutual Fund<\/div>\n<\/li>\n<li>\n<div style=\"text-align: justify;\">Birla Sunlife Mutual Fund<\/div>\n<\/li>\n<li>\n<div style=\"text-align: justify;\">ICICI Prudential Mutual Fund<\/div>\n<\/li>\n<li>\n<div style=\"text-align: justify;\">TATA Mutual Fund<\/div>\n<\/li>\n<li>\n<div style=\"text-align: justify;\">Quantum Mutual Fund<\/div>\n<\/li>\n<li>\n<div style=\"text-align: justify;\">Morganstanley Mutual Fund<\/div>\n<\/li>\n<li>\n<div style=\"text-align: justify;\">Kotak Mutual Fund<\/div>\n<\/li>\n<li>\n<div style=\"text-align: justify;\">Franklin Tempelton Mutual Fund<\/div>\n<\/li>\n<li>\n<div style=\"text-align: justify;\">UTI Mutual Fund<\/div>\n<\/li>\n<li>\n<div style=\"text-align: justify;\">Fidelity Mutual Fund<\/div>\n<\/li>\n<li>\n<div style=\"text-align: justify;\">Bharti AXA Mutual Fund<\/div>\n<\/li>\n<li>\n<div style=\"text-align: justify;\">Mirae Asset Mutual Fund<\/div>\n<\/li>\n<li>\n<div style=\"text-align: justify;\">SBI Mutual Fund<\/div>\n<\/li>\n<li>\n<div style=\"text-align: justify;\">Sundaram Mutual Fund<\/div>\n<\/li>\n<li>\n<div style=\"text-align: justify;\">Taurus Mutual Fund<\/div>\n<\/li>\n<li>\n<div style=\"text-align: justify;\">L&amp;T Mutual Fund<\/div>\n<\/li>\n<\/ol>\n<p class=\"tip\">Direct through Mutual Fund registrars &#8211; CAMS\/Karvy<\/p>\n<p style=\"text-align: justify;\">Here you need to dowload the form from respective MF site &amp; fill it up. Attach photocopy of you PAN Card &amp; 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.<\/p>\n<p style=\"text-align: justify;\"><strong>Advantage:<\/strong><\/p>\n<ul>\n<li>\n<div style=\"text-align: justify;\">Its a direct channel so no commssion whatsoever.<\/div>\n<\/li>\n<\/ul>\n<p style=\"text-align: justify;\"><strong>Disadvantages:<\/strong><\/p>\n<ul>\n<li>\n<div style=\"text-align: justify;\">You need to phsically go to office to submit. So not viable for everyone espicially in small towns. Every time you make an investment you need to fill up lenghty investment form. But if you invest in a fund which offers online invetment facility you can invest online subsequently.<\/div>\n<\/li>\n<\/ul>\n<p style=\"text-align: justify;\">Get\u00a0complete list of karvy\/cams office <a href=\"http:\/\/www.moneycontrol.com\/easymf\/order_forms\/invest_easy.php\" target=\"_blank\" rel=\"noopener\">here<\/a>.<\/p>\n<p class=\"tip\">Direct to Mutual Fund Offices &#8211; by post\/physically hading over<\/p>\n<p style=\"text-align: justify;\">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 &amp; documents.<\/p>\n<p style=\"text-align: justify;\"><strong>Advantage:<\/strong><\/p>\n<ul>\n<li>\n<div style=\"text-align: justify;\">Its a direct channel so no commssion whatsoever.<\/div>\n<\/li>\n<\/ul>\n<p style=\"text-align: justify;\"><strong>Disadvantages:<\/strong><\/p>\n<ul>\n<li>\n<div style=\"text-align: justify;\">Every time you make an investment you need to fill up lenghty investment form.<\/div>\n<\/li>\n<li>\n<div style=\"text-align: justify;\">It may take 2 days for postal delivery so the purchase price remains uncertain.<\/div>\n<\/li>\n<\/ul>\n<p class=\"tip\">Dedicated websites which offers different mutual fund schemes at one place<\/p>\n<ul>\n<li>\n<div style=\"text-align: justify;\">www.fundsupermart.co.in<\/div>\n<\/li>\n<li>\n<div style=\"text-align: justify;\">www.fundsindia.com<\/div>\n<\/li>\n<\/ul>\n<p style=\"text-align: justify;\">This is the newest of all channels in India &amp; so far the most convinient. I know of only these two sites which offer this service<\/p>\n<p style=\"text-align: justify;\">you can choose any one by looking at their Mutual Fund Scheme coverage &amp; other added services you desire. The process of opening an account is very similar for both of them.<\/p>\n<ol>\n<li>\n<div style=\"text-align: justify;\">You need to fill up an online form.<\/div>\n<\/li>\n<li>\n<div style=\"text-align: justify;\">The filled up form is then emailed to you<\/div>\n<\/li>\n<li>\n<div style=\"text-align: justify;\">download the form from your email, take a print out, and sign at relevent places<\/div>\n<\/li>\n<li>\n<div style=\"text-align: justify;\">attach PAN Card, Bank Cheque photocopy, adress proof and a photograph along with KYC form and courier it to the adress provided.<\/div>\n<\/li>\n<\/ol>\n<p style=\"text-align: justify;\"><strong>Advantage:<\/strong><\/p>\n<ul>\n<li>\n<div style=\"text-align: justify;\">You get advantage of online investment just like demat account but without paying anything.<\/div>\n<\/li>\n<li>\n<div style=\"text-align: justify;\">There are other value added services which too comes free of cost<\/div>\n<\/li>\n<\/ul>\n<p style=\"text-align: justify;\"><strong>Disadvantages:<\/strong><\/p>\n<ul>\n<li>\n<div style=\"text-align: justify;\">The cutoff time here is around 2:00 (in www.fundsindia.com) &amp; 1:20 (in www.fundsupermart.co.in) while if you go through direct online investment through MF sites it is 3:00.<\/div>\n<\/li>\n<li>\n<div style=\"text-align: justify;\">Note: For all kind of Online investment you need to have a bank account with online money transfer facilities.<\/div>\n<\/li>\n<\/ul>\n<p style=\"text-align: justify;\">Though this is the best channel so far <strong>personally I prefer www.fundsindia.com over www.fundsupermart.co.in because&#8230;<\/strong><\/p>\n<ul>\n<li>\n<div style=\"text-align: justify;\">Cutoff timing for equity funds is 1:20 in case of www.fundsupermart.co.in while 2:00 in www.fundsindia.com<\/div>\n<\/li>\n<\/ul>\n<p class=\"tip\"><strong>Conclusion:<\/strong> Take any channel you feel convenient but you must invest in Mutual Funds to reach your goal of Financial Freedom!!!<\/p>\n","protected":false},"excerpt":{"rendered":"<p>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 Demat Account Through financial advisors, banks, agents Online through respective Mutual Fund Sites Direct [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":4579,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_uag_custom_page_level_css":"","site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""}},"footnotes":""},"categories":[4],"tags":[80,121,122,81,2806],"uagb_featured_image_src":{"full":["https:\/\/www.apnaplan.com\/wp-content\/uploads\/2013\/03\/Mutual-Funds.png",594,414,false],"thumbnail":["https:\/\/www.apnaplan.com\/wp-content\/uploads\/2013\/03\/Mutual-Funds-150x150.png",150,150,true],"medium":["https:\/\/www.apnaplan.com\/wp-content\/uploads\/2013\/03\/Mutual-Funds-300x209.png",300,209,true],"medium_large":["https:\/\/www.apnaplan.com\/wp-content\/uploads\/2013\/03\/Mutual-Funds.png",594,414,false],"large":["https:\/\/www.apnaplan.com\/wp-content\/uploads\/2013\/03\/Mutual-Funds.png",594,414,false],"1536x1536":["https:\/\/www.apnaplan.com\/wp-content\/uploads\/2013\/03\/Mutual-Funds.png",594,414,false],"2048x2048":["https:\/\/www.apnaplan.com\/wp-content\/uploads\/2013\/03\/Mutual-Funds.png",594,414,false],"yarpp-thumbnail":["https:\/\/www.apnaplan.com\/wp-content\/uploads\/2013\/03\/Mutual-Funds.png",120,84,false]},"uagb_author_info":{"display_name":"Amit","author_link":"https:\/\/www.apnaplan.com\/author\/admin\/"},"uagb_comment_info":3,"uagb_excerpt":"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 Demat Account Through financial advisors, banks, agents Online through respective Mutual Fund Sites Direct&hellip;","_links":{"self":[{"href":"https:\/\/www.apnaplan.com\/wp-json\/wp\/v2\/posts\/470"}],"collection":[{"href":"https:\/\/www.apnaplan.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.apnaplan.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.apnaplan.com\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.apnaplan.com\/wp-json\/wp\/v2\/comments?post=470"}],"version-history":[{"count":0,"href":"https:\/\/www.apnaplan.com\/wp-json\/wp\/v2\/posts\/470\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.apnaplan.com\/wp-json\/wp\/v2\/media\/4579"}],"wp:attachment":[{"href":"https:\/\/www.apnaplan.com\/wp-json\/wp\/v2\/media?parent=470"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.apnaplan.com\/wp-json\/wp\/v2\/categories?post=470"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.apnaplan.com\/wp-json\/wp\/v2\/tags?post=470"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}