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How To Invest In Mutual Funds Online?

IndianMoney.com Research Team | Posted On Thursday, August 30,2018, 04:58 PM

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How To Invest In Mutual Funds Online?

 

 

Mutual Funds are the flavor of the season. Investors are rushing to invest in mutual funds to enjoy great returns. After demonetization, banks cut interest rates on savings bank accounts and FDs. Citizens rushed to invest in mutual funds via SIPs.

Systematic Investment Plans popularly called SIPs are a method of investing in mutual funds. You invest small sums of money regularly (say once each day, week, month or quarter) in a scheme of a mutual fund. SIPs encourage disciplined investing and give the compounding benefit (return on return). Citizens invested a record Rs 67,190 Crores in mutual funds via SIPs for FY 2017-18.

Now, times have changed. The RBI has gone for back-to-back repo rate hikes in the last two policy review meets for the first time since 2013. Repo rate has been hiked from 6 to 6.5%. Bank FD rates have gone up with SBI and HDFC Bank offering higher interest. One thing remains constant. After a minor dip investors are still investing a lot of money in mutual funds. Investors pumped in Rs 7,554 Crores via SIPs for the month of July.

Want to invest in mutual funds online? It’s simple. Want to know more on mutual funds? We at IndianMoney.com will make it easy for you. Just give us a missed call on 022 6181 6111 to explore our unique Free Advisory Service. IndianMoney.com is not a seller of any financial products. We only provide FREE financial advice/education to ensure that you are not misguided while buying any kind of financial products.

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How To Invest In Mutual Funds Online?

So how to invest in mutual funds online? You can invest in mutual funds online via mobile apps or a mobile platform. You are given a choice of mutual funds depending on category. You can invest in equity, debt or even hybrid mutual funds depending on risk tolerance.

Invest in mutual funds depending on financial goals. For long-term financial goals like retirement, invest in equity mutual funds. For financial goals of 1-3 years, invest in debt funds or balanced funds.

You can invest in mutual funds online via SIPs from home or office. Fill up the KYC (Know Your Customer) requirement and then invest in mutual funds. You have to submit an identity and address proof like PAN or Aadhaar.  You have to submit a photograph and confirm physical existence through IPV (In-Person Verification).

1. eKYC when investing in online mutual funds:

  • Complete eKYC before investing in mutual funds online. You will have to fill up personal information like name, date of birth, mobile number, permanent address and so on.
  • You then upload a scanned copy of PAN (Permanent Account Number) and Address Proof (Aadhaar).
  • IPV (In-Person Verification) can be done through a video call. The fund house would ask you to confirm physical existence (you really exist) through a video call. Keep PAN and Aadhaar handy as mutual fund houses may want to see this during the video call.

2. Invest in mutual funds using mobile apps

MyCams Mutual Fund Apps

  • You can buy, redeem or switch between mutual fund schemes using mobile apps.
  • You then complete Aadhaar based eKYC. CAMS eKYC is a completely paperless Aadhaar-based process to complete KYC. You can easily invest in best performing mutual funds after completing Aadhaar based eKYC.
  • Invest in mutual funds online either via Lump Sum or SIPs and create a watch list for mutual fund schemes you want to track.
  • The app is available on Android and iOS.

KTrack Mobile App Karvy

  • You can invest in mutual fund schemes via SIPs or lump sum investments.
  • Mutual Fund Distributors can find clients mutual fund portfolios at a single place.
  • You can buy, redeem or switch between mutual funds using KTrack Mobile App.

InvesTap Mutual Fund App

  • You can invest, switch, redeem and track mutual fund investments using the InvesTap mutual fund app from SBI Mutual Fund.
  • The InvesTap mutual fund app gives you red alerts vis-à-vis NAV of mutual funds.
  • Invest in mutual funds with just your PAN Number.
  • The InvesTap mutual fund app encourages you to invest in SBI BlueChip and SBI Balanced Fund.  

3. How to track mutual funds?

It’s very important that all mutual fund investments are at one place. This helps you easily exit mutual funds when financial and investment goals are met.

Mutual funds give you a Folio Number. You can track mutual fund investments with the folio number and get value of investments. You have the Consolidated Account Statement (CAS) which helps you track investments across mutual fund houses using PAN. CAS is sent to your email or you get a physical copy if there are no transactions in your account during the month.

You can track mutual funds online through investment trackers. Online portfolio trackers give you the latest valuation of all your investments in seconds.

SEE ALSO: How To Invest In A Mutual Fund For Beginners?

4. Mutual Fund charges

Mutual funds have a one-time charge when you start investing. There’s an exit load when you exit the investment. The exit load is not fixed and can vary between 0.25-4% depending on the mutual fund scheme.

Mutual funds have recurring charges paid on daily, quarterly or annual basis. There’s fund management fees paid to the fund manager and the account fees, paid to the AMC. The total expenses in the mutual fund is given by the TER (Total Expense Ratio).

5. Benefits of mutual funds

With mutual funds, there’s something for everyone.

  • You can invest in equity mutual funds for long-term financial goals and enjoy inflation beating returns.
  • Equity mutual funds are an excellent investment for retirement and buying a house.
  • For short-term financial goals like going on a vacation invest in debt funds.
  • If you want to save for an emergency invest in liquid funds.

Mutual funds give you the compounding benefit (return on return) and investing in mutual funds via SIPs encourages disciplined investing.

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