The Four Top Ways To Buy Mutual Funds Online

Mutual funds (MFs) have seen a resurgence of sorts in the past two years. Investors are lining up to invest in them, thanks to a sustained campaign by various parties. From televisions and radio ads to interactive social media quizzes and interesting emails, they are the hot favourites to invest in.

They are funds where many investors pool in their money and a fund manager invests them in various securities. One can buy mutual funds online and offline. Today, we take a look at the digital medium. Here are some of the best ways to buy these funds online.

1.    The Mutual Fund Company’s Website

Buying a mutual fund directly from the fund’s website is the most affordable way. While there is no charge levied, the process can be tiresome.

You will need to download the scheme form from the website and fill it up. Along with the scheme form, you will require the initial cheque, the KYC form, and a copy of your PAN card.

Visit the Registrar And Transfer Agents’ (RTA) collection centres to submit the forms. Investors are required to enquire for a personal identification number (PIN) to partake in online transactions.

2.    Independent Portals

There are quite a few number of websites which list out mutual funds you can buy. There is no charge but you need to create an account with the website to buy MFs from the website. They have tie-ups with most banks to enable digital payments. An investor benefits from independent portals because they offer add-on benefits such as research analysis and performance tracking tools.

3.    Banks

A few banks offer services to buy MFs. While they charge a nominal fee, an investor can be assured of efficient services. Banks may require the investor to open an investment account and also have a bank account within the same bank.

4.    Broker

When you trade in shares, a Trading and Demat account is necessary. If your broker provides services to buy MFs, an investor can buy them using his or her trading account. He or she needs to log onto the broker’s portal, open the MFs section and select the funds required and the units deposited into the Demat account. Most brokers offer this free of charge but there are a few which levy a nominal charge.

A Mutual Fund is an excellent addition to an investor’s portfolio. The following four ways are the best to buy them online. Make sure to fill the forms with correct data.