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The best ways to buy mutual funds online

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The best ways to buy mutual funds online


The days where Mutual fund investors seemed to be a pampered lot is gone now as times have changed. This is very much evident once you approach an agent for a mutual fund because most probably he might either offer you an excuse or an Ulip or both.

However unconceivable this might look like, this is the sad truth for the mutual fund industry. The scrapping of entry loads-the bread and butter for many advisers, is partly to be blamed. But since times have changed, there are better options even if you don’t have a dependable advisor. This is where the online route comes in thereby helping you to invest in mutual funds.

There are numerous ways by which you can buy mutual funds online but before bumping into anything, the first thing that we need to ensure is the ease of accessibility and convenience. We need the most convenient way to invest online and if you a first-time investor, there is still the need for you to physically approach the fund house or collection centers of either of the RTAs (CAMS and Karvy) for submitting the application form.

Also, you need to apply for a personal identification number (PIN) for online transactions. All the following transactions in the folio can be done online using your bank account after you are assigned a folio number along with the PIN.

Howsoever, you still need to go through the entire procedure again if you are interested in investing in other fund houses where the only thing you can skip off will be the KYC Procedure. It is pretty obvious that remembering six or seven PIN’s of different fund houses is highly impractical.

There is also the option of buying mutual funds through the same channel if you have an online trading account for stocks. However, be sure to check this option with the broker but then again most large brokerages, these days, are linked to the NSE or BSE mutual fund exchange platforms.

First you need to log on to the broker’s online trading terminal and from there on you need to select a scheme of your choice. The units will then be credited straightaway to your DEMAT account. Here also, you need to ask your broker to activate the access for the mutual fund portal. There are online SIP facilities offered by certain brokers for those who do not intend to make one-time lump sum investments.

Some brokers also provide the option of in-house research. At present, this service is free of cost in most brokerages. Some independent web portals allows you to trade online with no further cost provided you start an account with them which is of course free.

Almost all fund houses’ schemes are offered by portals such as Funds India and Funds mart. Other than the zero-cost advantage, these portals also offer numerous extra benefits that deliver a welcoming, tension free experience to the investors. They also offer tools to keep track of your holdings along with internal research and analysis to help you build the perfect assortment.

Best of all, Funds India allows its customers to invest through the VIP route and this option is very much favored by their customers.