अब आप न्यूज्ड हिंदी में पढ़ सकते हैं। यहाँ क्लिक करें
Home » Information » Mutual Funds: How to invest online?

Mutual Funds: How to invest online?

By Newsd
Published on :
Four Hidden Facts About Mutual Fund SIPs

To invest in mutual funds online is an easy and simple process. There are a number of mutual funds online portal available which allow a user to invest in various policies.

One of the mandatory requirements while using mutual funds online is a PAN card number. Without it, a person can-not invest in the same. The online service helps in buying, selling, as well as monitoring the investment. It also provides them information about the current status of their mutual funds.

An investors needs to follow a simple 3 step process in order to successfully invest in the funds online. These processes includes:

KYC (Know -your- customer) is mandatory:

The first basic step to invest in mutual funds is to compliant KYC. A majority of portals help users in getting the KYC done online. The online KYC can be done with the help of a user’s 12 digit Aadhaar card number. All a user needs to do is enter the Aadhaar number, PAN, registered mobile number and the OTP (One Time Password) sent on the mobile number to activate their KYC online.

The KYC online puts a limitation on its users that is, they can invest up to Rs.50,000 only per year on mutual funds online. However; there is a solution to this problem as well. If a user wants to invest above Rs. 50,000, he/she can opt for physical KYC or bio metric KYC. To complete the KYC process, it is necessary to provide information like the name of your bank and the bank account number. There are some portals like Clearfunds.com & FundsIndia.com which immediately deposit INR 1 in the user’s account to verify whether the account information given is correct or not.

Cost:

The schemes available at mutual funds online portals offer both direct as well as regular plans. It is made compulsory for registered investment advisers to offer direct plans to the consumers if they are charging fee for the advice.

It is advised that a user checks the cost structure before investing anywhere. There are web portals such as Mutual Funds Utility, maintained directly by the mutual funds industry which permits users to invest directly and also, keep a check on all the transactions.

Some portals offer direct plans but in return they charge minimal fee for every transaction and also some extra money for giving advices on investments. There are other category of portals available as well which offer distributor plans combined with loads of services.

Selection of fund:

The process to choose which kind of investment (fund) will suit the user the most is very important. The users can buy funds either by taking help of robo advisers (they are online financial advisers that is, advisers without human involvement who use algorithms and science to decide which fund is the best) or decide on their own. However; it must be kept in mind that online portals work the best in favor of those who understand Mutual Funds and if a user wants full support and protection, he/she should go for robo advisers.

How to create a perfect mutual fund portfolio in the current volatile market

Use these three new methods to link Aadhaar with mobile number at home

Related