homepersonal finance NewsLooking to open a mutual fund online? Keep these things in mind

Looking to open a mutual fund online? Keep these things in mind

In mutual funds, money can be parked using both Systematic Investment Plans (SIPs) or lump-sum investment options.

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By Anshul  Apr 22, 2020 6:29:57 PM IST (Published)

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Looking to open a mutual fund online? Keep these things in mind
Amid the coronavirus outbreak and subsequent lockdown, it has become very important to move business and personal investment transactions online. Mutual Funds (MFs), as an investment opportunity, are a very important part of an investor's portfolio. As per experts, it is now very easy to go online and invest in mutual funds.

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In mutual funds, money can be parked using both Systematic Investment Plans (SIPs) or lump-sum investment options. In SIP mode, investors are required to invest a small amount of money in a disciplined way, while in lump-sum investment, they can put the fund in one go at the start of the investment cycle.
Both modes of mutual fund investment can be done online.
"Most SEBI-registered Investment Advisors and AMFI-certified mutual fund distributors have their own websites from where investors can invest online without any hassle and in any mutual fund scheme," explains Yashpal Sharma, Vice President, Taurus Mutual fund.
Online mutual fund aggregators offer the facility of investing and conducting all transactions through their sites. Investors can directly put money in mutual funds through their Demat account. However, they will have to pay annual charges to the broker, in addition to the expense ratio.
"Alternatively, investors can approach their advisors who can guide on online investment in mutual funds via the stock exchange route or the MFU (Mutual Fund Utility) portal," Sharma adds.
The first step to start investing in mutual funds is to become KYC (know your customer) compliant. Only after this one can invest in mutual funds, as mandated by the Securities and Exchange Board of India (Sebi).
Sharma of Taurus Mutual Fund also suggest few tips that an online MF investors should keep in mind:
  • All online transactions require to use a valid email id and mobile number, along with creation of a password. Remember to use the OTPs (one-time password) where available.
  • Ensure to periodically check the spam folder and whitelist any important email that might have automatically landed there
  • Ensure to use the same email id and mobile number across all the investments. That will help in managing investments in a more efficient manner.
  • (Disclaimer:
    CNBCTV18.com advises users to check with certified experts before taking any investment decisions.)

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