How To Invest Online In Direct Mutual Funds

How to Invest Online in Direct Mutual Funds

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With the growing economy, everyone is looking for the best options to Understand how to invest in direct mutual funds. One needs to understand that the mutual fund is a technique used by investors to manage their funds professionally. Mutual funds direct investment was introduced by SEBI in 2013. Since then, direct mutual fund investment has been popular amongst all ages of investors. Investors are eager to understand how to invest in direct mutual funds because there is no middleman to take any commission from them. That means knowing how to invest directly in mutual funds will save a lot of money and add that pool of money to the returns of the investors.

Nowadays, investors use the best way to invest in direct mutual funds online. Mutual funds direct investment is the professionally managed pool of money That can be used to purchase securities. It is very common and easy to understand how to invest in direct mutual funds these days. Investors know how to invest in direct mutual funds with the help of online and offline modes. Before understanding how to invest rectally in mutual funds, one must know what mutual funds are. In this article, we will understand mutual funds’ direct investment techniques.

What Are Mutual Funds?

Investing money in securities like stocks, bonds, short-term debts, etc. for investors is known as a mutual fund investment. Direct mutual fund investment is at its peak nowadays as the holding of the mutual fund is a portfolio. Investors are looking for the best way to invest in direct mutual funds online. How to invest in direct mutual funds is understood if mutual funds direct investments involve the purchase of shares in mutual funds. 

All of these funds have some sort of or some level of risk involved. There are high chances that an investor receives higher returns by investing in direct mutual fund investments. But the investors may lose some or all of their money if the securities held by a fund dive deep into the share market. Depending on the market conditions, the dividends or the interest payments may also vary for the investors in a mutual fund’s direct investment.

Mutual Fund Direct Investment

One may want to know how to invest in direct mutual funds. Keep reading the article and you will find out how to invest directly in mutual funds. Investors can use the best way to invest in direct mutual funds online or offline;. Mutual funds direct investment is a one-stop solution for the investment investors as there is no commission fee involved. Before taking any steps in the direction of how to invest in direct mutual funds, one needs to choose their desired mutual funds to invest in. 

Knowing the type of the mutual fund and the Asset management company the funds belong to Is the answer to how to invest directly in mutual funds. Based on the investor’s financial goals to achieve, Mutual funds direct investment involves the amount the investor wants to invest in the desired fund. The investors can choose from two options of direct mutual fund investment: Lump sum investment or systematic investment plan.

How To Invest In Mutual Funds Directly Offline?

Many investors still prefer the traditional ways of mutual fund direct investment because they have some doubts about online ways. 

  • One needs to fill up the application for the mutual fund’s form. Mutual fund direct investment is done once the investor visits the nearest AMC office of the selected mutual fund. Once the investor reaches the office of the AMC, they would ask the authorities how to invest in direct mutual funds. 
  • The authorities would ask the investors to fill in the KYC details. The document of the KYC is procured at the AMC office itself. A self-attested copy of the PAN Card and address proof is to be submitted. Address proof can be a copy of the passport, latest telephone bill, latest electricity bill, latest bank passbook, Bank account statement, Demat account statement, driving license, rental agreement, ration card, etc. The investors have to submit a common application form or SIP form. 
  • Via the SIP route, the investors need to fill the NACH mandate Which is the National automated clearinghouse. This would permit the AMC to auto-deduct the SIP amount from the investor’s account. The auto deduction will start from the start date of SIP. For mutual fund direct investment in an offline mode, the investors are supposed to submit a demand draft or a check in the name of the AMC For the desired mutual fund. 
  • Once the investments are made, the investors are given the folio number. The transaction is then initiated for the mutual fund direct investment. Audio offices also provide a similar kind of process for investments in mutual funds. 

It is to note that mutual fund direct investment in an offline mode requires the investors to come and visit the AMC offices physically. Only after filling up all the forms and making the investments for a desired mutual fund, the entire process of mutual fund direct investment is completed.

Read More- How to Invest in Nifty Index Fund Directly

Best Way To Invest In Direct Mutual Funds Online

If an investor wants to know how to invest directly in mutual funds without the help of any broker, they can try to understand the best way to invest in direct mutual funds online. It is way more convenient than paying a physical visit to invest in direct mutual funds. The investors need to fulfill all the KYC documents as well. KYC requirement is just a one-time process That will let the investors invest in mutual funds direct investment in no time. 

For direct mutual fund investment, PAN card details are crucial as all the mutual fund companies will check if your KYC details are linked to your bank card or not. In this article today, we will discuss two ways of online direct mutual fund investment for our readers:

1. How To Invest Directly In Mutual Funds Through Asset Management Company (AMC) Website

The investor needs to select their desired mutual fund and needs to visit the official website of that particular mutual fund. For mutual fund direct investment, investors are supposed to open an account with an asset management company (AMC) or the mutual fund house. The details entered here will be familiar to the application form that one gets in physical form. In different AMCs, different processes are followed. The investor is supposed to click on “direct” under the “Plan type” option. 

From mutual fund direct investment, the investor is supposed to Choose the desired scheme of the mutual fund they want to invest in. Based on one’s investment objective, one can choose from “Dividend” and “Growth” options. The options of lump-sum investment or systematic investment are given to the investors. Different details like Demat or no demat, RIA code, mode of payment, bank name, bank account number, IFSC code, account type, etc. are to be filled by the investor. 

To avoid any hassle later, the investor needs to check all the details they have entered. There are some MCS that might ask you for verification via OTP. How to invest directly in mutual funds steps are completed with the payment Made to buy the direct mutual fund. One thing to note is that the OTP And the confirmation of direct mutual fund investment Will be sent on the investor’s registered mobile number and email ID.   

2. How To Invest In Direct Mutual Funds Through Registrar And Transfer Agent (R&TA)

Karvy and Cams are registrars and transfer agents (R&TA) that help investors to perform direct mutual fund investments. All the investor needs to do is to find out if the desired mutual fund is registered with the registrar for the mutual fund direct investment. If the desired mutual fund is not registered, then the investors will have to use the first above-mentioned step to get a direct mutual fund investment. 

This step is also similar to the previous step. The process involved in how to invest in direct mutual funds through a registrar and transfer agent is also similar to the asset management company website step. SEBI- registered investment advisors also provide online platforms to investors for direct mutual fund investment.

Read More- How to Prevent Chit Fund Frauds?

Benefits Of Online Mutual Funds Direct Investment

Multiple types of securities such as stocks, bonds, Mutual Funds, etc. are held with the help of a Demat account. It lets the investors understand or figure out how to invest it actually in mutual funds with convenience. But a Demat account is not crucial for holding the mutual funds directly. There are several benefits of online mutual fund direct investment that we have listed below for our investors: 

  1. Mutual fund direct investment through online mode is a less time-consuming and more convenient way of investing. 
  2. Many schemes that are unavailable in an offline mode become available in an online mutual fund’s direct investment mode. 
  3. After the KYC details are submitted in an online mode, multiple mutual funds’ direct investment schemes can be selected across different platforms. 
  4. Once registered with an AMC online, the investor doesn’t have to register over and over again from the same AMC if investors want to invest in mutual funds from the same AMC in the future.

We wish all investors happy investing and we know now all of you know how to invest in direct mutual funds. Both online and offline modes of investing in mutual funds direct investment Will let you understand how to invest directly in mutual funds.

Read More- eKYC Is Now Mandatory to See Mutual Fund Investments

Direct Mutual Funds – FAQs

Q1. What is the Meaning of Mutual Funds Direct Investment? 

Ans. The investment in mutual funds without the help of any broker or any commission fee is known as mutual fund direct investment. 

Q2. How to Invest Directly in Mutual Funds? 

Ans. The investors have to select the desired mutual fund to invest in and then the investor can choose the online or offline mode to understand how to invest directly in mutual funds. 

A3. Can We Buy Mutual Funds Directly? 

Ans. Yes, without the involvement of any broker, Investors can buy mutual funds directly to figure out how to invest directly in mutual funds. 

Q4. Which Platform is Best to Invest in Mutual Funds Directly? 

Ans. Zerodha Coin, Grow – Direct Mutual Funds App, ETMONEY Mutual Fund App, myCAMS Mutual Fund App, KFinKart – Investor Mutual Funds, PayTM Money Mutual Funds App, Krack mobile app by Karvy are some of the best platforms to invest in mutual funds directly. These platforms will make you understand how to invest directly in natural funds easily and conveniently. 

Q5. Can You Name the Best App For SIP? 

Ans. Coin by Zerodha, Groww, PayTM Money Mutual Funds App, Kuvera, and ETMONEY are the top five best apps for SIP That lets investors figure out how to invest directly in mutual funds. 

Q6. Is There a Need For a Demat For SIP? 

Ans. Knowing Western needs, a Demat account for investing in SIPs. The investors who are interested to invest in a share market, only need the Demat account.

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