@Raj
Its better to do it yourself rather than with guidance from Relationship manager (RM) as most of the RMs try to push products which give them maximum commission.
I would advise you to read this post: http://www.pankajbatra.com/india/how-to-transact-mutual-funds-online-directly/

There is no need of demat account in mutual fund investment. No separate account is needed.

@Mothilal
In terms of returns it may beat SIP. But in case of falling markets, it may show more negative returns than SIP.
It would be good for long term (more than 5 years).

Thanks for the Details. So TIP have more advantage than SIP in terms of return? Is it correct?

@Mothilal
Target investment plan is a new concept introduced by some of the brokerage firms like ICICI securities. It automatically invests more or less amount every month on basis of returns delivered by earlier investments. It tries to buy more in a down market.
Unlike SIP you won’t know how much amount would be invested next month.
You would have to set a corpus amount, maximum investment amount, expected returns and a period.

TIP works on the principal of fixed units over a specified period of time. Hence, you decided that you want X units per month. If the market conditions are good, then fewer amounts will be invested. If market conditions are bad, then more amounts will be invested. The advantage is you are sure that after some years, you will have specified units that can be encashed.

You can read more about TIP here: http://content.icicidirect.com/newsiteContent/ProductService/includes/FAQ_on_TIP.pdf

@Shilipi
I would advise you to first go through below links:
1. Need best suitable Mutual Funds to invest
2. mutual fund investment and SIP

Thanks Pankaj.