Thanks to the internet, investing in mutual funds is now easier than ever. But if you’re new to mutual funds, you should know that there are multiple ways to start investing in them online. Here is a list of 5 of the most popular ways for online mutual fund investment.
In the past, the only way to invest in mutual funds was through your broker or AMC agents or distributors. But with the advent of internet banking, the mutual fund universe has transformed for good. Now you can start investing in mutual funds online from the comforts of your home or office any time of the day.
But even on the internet, there are multiple ways for investing in mutual funds. If you’re planning to start your investment journey, here are the top 5 ways to invest in mutual funds online-
The easiest way to start investing in mutual funds online is through the website of AMC (Asset Management Company) or fund house. Almost every fund house in India now has an online portal from where you can start investing in any fund they offer.
You’ll have to get your eKYC done to be able to start investing. The eKYC is a one-time process which when completed, enables you to invest in any mutual fund from any fund house along with a host of online financial activities.
Many of the AMC’s now also have mobile apps from where you can start investing in a fund of your choice within minutes. If you have an Android or iOS device, simply download the app of your AMC, complete eKYC if not done already and start investing.
Just like the online platform, the mobile app also offers all the features and convenience. You can invest a lump sum amount or start a SIP . Investing through the official website or mobile app of the AMC is the only way to avoid paying commission and earn higher returns on your investment.
One of the popular ways to invest online in mutual funds online is through your demat account. You’ll have to get in touch with a stockbroker to open a demat and trading account. Many of the brokers now also allow you to open a demat account online.
With a demat account, you can easily buy and sell units of any mutual fund schemes. However, brokers charge a percentage basis fee or a flat fee for the investment.
There are also several 3rd party web portals that allow you to invest online. These portals are generally registered with the AMCs as agents or distributors and earn a commission when you invest through them.
Some of them also have mobile apps that allow you to invest in mutual funds on-the-go.
Many of the banks too, are now registered as agents or distributors of several top AMCs. If your bank offers this feature, you can visit the official website or your bank and start investing in mutual funds.
Just like 3rd party portals, the banks too earn a commission when someone invests in a mutual fund through their website.
Now that you have an answer to how to invest in mutual funds online, start your research to pick out the best funds that suit your personal profile. Make sure that you understand the pros and cons of all the different ways to select a method that is the safest and most convenient.