Best way is to apply directly to the Mutual Fund company as it will save your 2.25% money as If you apply thru any broker entry load of 2.25% will be cut.
For example, If you invest 1 Lakh into a Mutual fund, 2250 Rs will be deducted straight forward, if you go thru your broker.
Download the mutual fund form in which you want to invest from their website. (Download links provided for all is provided here). Take print out of application form and SIP form. Fill all details, attach a copy of PAN card and cheque and submit the form to nearest CAMS or Karvy investor centre or Mutual fund office. Office locations of CAMS can be found here and for Karvy, it can be found here.
In SIP form, you have to specify your bank details such as account number, branch name, location, MICR code, IFSC code. Auto debit authorisation will be done by Mutual fund itself. It will take 30-40 days for SIP auto-debit to start as first mutual fund house will send the form to your bank. When bank will approve your details, auto-debit will start from your account for SIP.
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Good piece.
Good Info
Can we purchase mutual funds online without having to pay the brokerage.
Does CAMS, Karvy or mutual fund company has online transaction facility.
@Prasad,
Yes, you can transact in mutual funds on line without paying brokerage and other charges.
Most of the mutual fund companies provide this functionality on their website. You will have to login on different sites to transact in different funds.
Read more at : http://www.pankajbatra.com/finance/mutual-fund-investment-with-zero-entry-load/
If I submit for the SIP application for SBI Mutual fund through CITI bank account, will i be charged a brokerage ?
@Rajendiran
Every bank has its own policy on service charge/brokerage. You should consult with CitiBank regarding same.
After the march 10th guidelines. Do brokers will charge me brokerage for SIP. For eg. I have a sharekhan account if I set up a SIP through sharekhan for HDFc equity fund.Will I be charged a brokerage every month by sharekhan ?
Regards
Mahesh
@Mahesh
Entry load has been scrapped by SEBI but brokers may charge brokerage or service charges for SIP or lump sum application.
Brokerage/Service charges varies from broker to broker and fund to fund.
You should be notified of the charges when you apply through them.
As per SEBI guidelines, payment of brokerage or commission, if any, to the sponsor or any of its associates, employees or their relatives, has to be disclosed in the half–yearly annual accounts of the mutual fund.
thanks pankaj for the prompt response. Keep up the good work....
Regards
Mahesh
Hi All,
Most of you might not be aware of the HDFC 'Investor Services Account" (ISA) which can be opened for free, if u have a savings/salary account with them. ISA account allows you to purchase any mutual fund of any company online without any entry load or any other charges.Just select the fund from the drop down that they provide and pay through internet banking. You can also do a SIP, sell units , view statements, view past and current NAVs etc. The only catch here is you have to pay a quarterly maintainance charge of Rs.100 flat (irrespective of the number of funds you buy/sell or the number of transactions), which i think is nominal for the service they offer . You dont have to run around different AMCs and fill huge forms and waste your cheque leaves.
i want to know best sip funds
@Heena
Which funds you are looking for?
Tax savings or pure equity for investment.
pure equity
@Heena
You may invest in HDFC Top 200 Fund, Sundaram Select Midcap, ICICI Pru Discovery Fund, DSP Backrock Top 100 fund, HDFC Equity Fund, Sundaram S.M.I.L.E Fund and Birla Sunlife Frontline equity fund.
THANKS FOR INFORMATION AND I WANT TO KNOW ABOUT TOP SIP OF RELIANCE.
@Heena
Top Reliance funds are Reliance Equity Opportunities, Reliance Growth and Reliance Regular Savings Equity
Thank dear for every information
Hi Pankaj,
First of all thanks for all the info. I am a new investor and am doing some research before investing for first time in ELSS. I have a few queries. Can you help:
1) Instead of applying directly to mutual funds, there are services like HDFC Invester (ISA as mentioned by someone earlier) and Kotak Securities. There is no entry load but some nominal Annual or Quarterly fee. What is your opinion on applying, buying and managing MFs via these services?
2) Is it a good option to invest in ELSS now as after DTC is applied in 2012, ELSS wont anymore be a Tax Saving option and eventually the ELSS funds will die. (My concern is - If I invest now - How will these funds perform once DTC is applied? As they, wont get any new investors, the performance of these funds may detoriate)
@Saurav
1. Applying through online investment accounts like HDFC or Kotak, is easy. Your portfolio is managed at a single place. But apart from yearly fees, there may be some transaction fees/service charge on each transaction.
In case you want to save these extra charges, apply directly. Here are some relevant links:
http://www.pankajbatra.com/finance/mutual-fund-investment-with-zero-entry-load/
http://www.pankajbatra.com/india/how-to-transact-mutual-funds-online-directly/
2. You have raised a good point, But I don't think that will be a big issue. Fund managers will also know this in advance and take appropriate actions. This year we can buy these as still there are two more years for DTC to come into force.
Hello mr Pankaj,
This is Sunil. I m a CA student.I get only Rs. 3000 as stipend. I just want to know which mutual fund's SIP plan will be suitable for me if I invest only Rs.500 per month.
@Sunil
You can choose among HDFC Top 200 Fund, ICICI Pru Discovery Fund, DSP Backrock Top 100 fund , HDFC Equity Fund and Birla Sunlife Frontline equity fund.