Going online for mutual fund transactions has definite advantages.
- Tracking of investment values whenever needed.
- Saves time.
- Saves paper.
- Efficient and less error-prone. No need to issue cheques.
- Privacy. No need to share investment details with agents and anyone else.
- No service charge, entry load and brokerage.
- Do-it-yourself.
Through Direct AMC websites:
Each mutual fund company (AMC) has its own website for online mutual fund transactions and you will have to create separate login for each such site to transact on them.
If you are already an investor into a mutual fund, you can apply for a HPIN which can be used to login and transact online.
There is actually no way to apply fully on-line, directly to the AMC, for the first time investor (who does not have a folio).
The issue with this method is first time you have to do it off-line, secondly you have to fill form and maintain PINs for different AMCs separately (like each one for HDFC, Birla, SBI etc.).
But once you have gone through all this once, life becomes super easy. Whenever you want to apply, just login and apply online using your bank account.
Getting money back also becomes easy. Redemption becomes faster as amount is directly credited back to bank account through NEFT. No tension of cheques and paper work etc.
This way of investing does not have additional cost attached. There is no brokerage, service fees or entry load charged and all applications are mentioned as Direct (with no agents involved). We also had covered this in details earlier on: Mutual Fund Investment with zero entry load, brokerage and service charge and Best way to apply in SIP
Steps for transacting directly with AMC:
1. You will have to Download the mutual fund form from the mutual fund website, after printout fill hard copy form and submit to nearest CAMS/Karvy/Mutual fund office along with PIN generation form (same like an debit card pin or email password) and cheque for initial investment amount.
If you are already an investor in same company mutual fund in which you wish to invest more (already have a folio), you will have to just fill a PIN generation form. Download links for PIN and mutual fund application forms are below:
Baroda Pioneer Mutual Fund
Benchmark Mutual Fund
Bharti AXA Mutual Fund
Birla Sun Life Mutual Fund
Canara Robeco Mutual Fund
L&T Mutual Fund
DWS Mutual Fund
DSP BlackRock Mutual Fund
Edelweiss Mutual Fund
Escorts Mutual Fund
Fidelity Mutual Fund
Franklin Templeton Mutual Fund
HDFC Mutual Fund
HSBC Mutual Fund
ICICI Prudential Mutual Fund
IDFC Mutual Fund
ING Mutual Fund
JM Financial Mutual Fund
JPMorgan Mutual Fund
Kotak Mahindra Mutual Fund
LIC Mutual Fund
Religare Mutual Fund
Mirae Asset Mutual Fund
Morgan Stanley Mutual Fund
PRINCIPAL Mutual Fund
Quantum Mutual Fund
Reliance Mutual Fund
Sahara Mutual Fund
SBI Mutual Fund
Sundaram BNP Paribas Mutual Fund
Tata Mutual Fund
Taurus Mutual Fund
UTI Mutual Fund
2. Once you have your folio number and PIN, you are ready to transact in mutual funds completely on-line. Below are links for online accounts for different AMCs:
Kotak Mutual Fund
Birla Sun Life Mutual Fund
Principal Mutual Fund
DSP BlackRock Mutual Fund
Reliance Mutual Fund
SBI Mutual Fund
HDFC Mutual Fund
ICICI Pru Mutual Fund
Franklin Templeton Mutual Fund
Fidelity Mutual Fund
UTI Mutual Fund
CAMS Online Transaction Service
Karvy Online Services
Through Independent websites:
There are many independent 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.
Some of them are provided below:
As of now there are no additional charges levied in these websites, but they are free to charge service fees/brokerage in future.
Through Online trading websites:
If you already have online trading account (with which you trade in stocks in demat form) with a brokerage house, then you can also transact in mutual funds from there. Most of the online brokerage companies like ICICI Direct, Kotak Securities, Religare, Indiabulls, Reliance, India infoline etc provide online mutual fund services too.
Some of these may levy charge service fees or brokerage for transactions.
Through Stock Exchange:
Trading in mutual funds can also be done through NSE and BSE platform. This will be done in demat account and a registration has to be done through broker for the same.
All existing mutual fund holding can be converted to dematerialized form. For the same, conversion request form need to be filled and submitted to depository participant. After verification, mutual fund units will be transferred to demat account.