in Finance, Investment, Mutual Funds

Transacting In Mutual Funds Online

Investing in mutual funds is the best method to grow your money in the long run. You can pick from different types of fund available like Equity, Debt, FMPs etc.

In today’s digital times when we are doing everything online, it makes sense to go online for mutual fund transactions also.

Going online for mutual fund investments has multiple advantages:

  1. Real-time tracking of fund value: You can check your portfolio value anytime you want without contacting anybody.
  2. Time-saving: You can transact in the comfort of your home. It saves time as you need not to go to any office.
  3. Saves paper: Online method is environment-friendly too. It saves lots of paper.
  4. Efficient and less error-prone: Its less error prone as there is no physical form filling. No need to issue cheques.
  5. Privacy: There is no need to share investment details, bank account etc with agents and anyone else.
  6. Cost Effective: There are no service charges, entry load, and brokerage; if you do it yourself online.
  7. Do-it-yourself: It also gives the satisfaction of doing it yourself.
  8. Easy redemptions: Whenever you want the money back you can sell online and the amount comes back to your linked bank account.

Whether it is online tax saving mutual funds or diversified equity plans, you can buy all types of funds online. There are various ways to do the same.

  1. Through Online stock trading/Investment platforms: If you already have an online demat account (with which you trade in stocks in demat form), you can also transact in mutual funds from there. With such a platform (like, it is possible to use one account to track multiple investments – mutual funds, stocks, SIPs, insurance, bonds and debentures, commodity trading, FDs, ETFs, and others. This makes it easy to know how your investments are faring in the market and compare the returns from different products. On the other hand, independent platforms offer a limited number of products.
  2. Through Direct AMC websites: Each asset management company (AMC) has its own website for online mutual fund transactions and you will have to create a separate login for each such site. Thus, you’ll need to maintain a record of multiple login credentials for your investments and merge your accounts to see all your investments in one place. Even if you have not done any transactions in the past, you can create an account online and on a few of the websites you can also get KYC done online.
  3. Through Online Independent Portals:: There are many independent app/websites through which you can transact in mutual funds online for free. You can register and buy mutual funds through these websites. You do not need a demat account for this. As of now, there are no additional charges levied in these websites, but they are free to charge service fees in the future.

Now as you know all the benefits of transacting in mutual funds online, going forward just stop filling forms and chasing mutual fund agents. Happy investing!

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