Investing has become much easier in recent times, and there is no need to run to the bank each time you want to invest in anything. Whether it is investing in the stock market, starting a fixed deposit, buying a mutual fund, or just about investing in any financial product, most of it can be bought online in just a few clicks. There are several ways you can invest in mutual funds online, and you should follow the way that best suits you. Here are the few ways you can invest in mutual funds these days –
Buying from AMC Website
Mutual funds can be bought online directly from the site of the fund house. However, in due course, you would be investing in several mutual funds, and every time you select a different fund house, you would need to sign up again. Signing up and remembering the password of all these different websites of different fund houses can become a hassle. Even though it becomes much easier to manage your funds or sell it online once you have signed up with the AMC’s website, it doesn’t give you a comprehensive view of your mutual fund portfolio.
There are several independent mutual fund investment and finance-based portals that allow investors to buy and liquidate mutual funds online. Once you sign up with these portals, it gives you the option to invest in any mutual fund you wish to invest in as per your preferences. The independent portals provide some suggestion based on your risk profile as to which mutual funds are right for you. It would even give details about the market trends, high performing mutual funds, past performance of any particular mutual fund, and more. The information by these independent portals can prove to be instrumental when buying mutual funds. The process of buying and liquidating online at these sites is seamless, and it just takes a few minutes once you have set up your account. You can buy mutual funds from different fund houses from the same account.
The online brokers who offer investors to invest in the mutual funds function similar to any share broker. There would be a certain commission charged on the purchase and selling of mutual fund units. One advantage of buying a mutual fund through brokers is that it might not require separate KYC for different fund houses you invest with. You will also be able to utilize the experience and the knowledge of the online brokers especially if you are a beginner. They will guide you through the entire process to make it easy for you to invest.
All of the leading banks sell mutual funds on their platform. If you choose to buy mutual funds from your bank itself, you do not have to get KYC and can do directly through your net-banking. All you have to do is log in to your net banking on desktop or the app and then buy mutual funds. These platforms, such as the Kotak mutual fund online app or any other net banking apps of banks, you can easily do your research and invest in mutual funds without paying a broker.
Direct Plan vs. Intermediaries
Even though there are different ways to purchase mutual funds, you need to choose between direct plans or involve certain intermediaries. In a direct plan, you will purchase directly from the mutual fund company, and it is best for someone with a lower expense ratio. In this case, you will earn higher returns. However, if you are not experienced enough, direct plans might be a little confusing for you. In intermediaries, you will purchase with the help of banks, brokers, or financial companies who are registered with AMFI. You can choose one from the list provided on their website if you wish to purchase or invest in mutual funds.
It is essential to start small and then go on to invest more once you are comfortable with whatever platform you choose to buy mutual funds. Even though all of them have their own pros and cons, you will know what is best for you after using a few and seeing what type of results you are able to get from them.