The Different Ways of Investing in a Mutual Fund Online

A mutual fund means a fund established in the form of a trust to raise monies through the sale of units to the public or a section of the pubic under one or more schemes for investing in securities, money market instruments, gold or gold related instruments, real estate assets and such other assets 

In the past, the way for the mutual fund investor to make investments was through AMC agents or distributors.

 

Thanks to internet banking, the mutual fund online investor can start investing in mutual funds online any time of the day.

Even on the internet, there are multiple ways for investing in mutual funds online.

1.     AMC Website

The simplest way to start investing in mutual funds online is through the website of AMC (Asset Management Company) or fund house. Most of the fund houses in India operate an online portal. The mutual fund investor can now make any mutual fund investment online. It KYC is mandatory for the investors to invest in mutual fund online.

2.     Mobile App

Nowadays, most of the AMC’s have mobile apps from where the mutual fund online investor can invest in a fund of her/his choice in no time. In case of an Android or iOS device, download the AMC app, complete the KYC if not done already and start making mutual fund investments online.

The mobile app is also highly convenient. One can invest a lump sum amount or start a SIP. By investing through the official website or mobile app of the AMC,

3.     Demat Account

Another well-known way to invest online in mutual funds is through your DEMAT account. You need to contact a stockbroker to open a demat and trading account. Most brokers allow you to open a demat account online.

The mutual fund online investor can easily buy and sell units of any mutual fund schemes. However, do remember that brokers charge a DEMAT Charges  .

4.     Third Party Web Portals

There are also third party web portals that allow the investor to make mutual fund investments online. These portals are normally registered with the AMCs as distributors. They earn a commission when you invest through them. Some of them also have mobile apps that allow you to invest in mutual funds online.

5.     Bank Website

In the present day, many of the banks too are registered as distributors of several AMCs. You can visit the official website or your bank and start investing in mutual funds online. Just like third party portals, the banks too earn a commission when one invests through them.
Stock exchanges

Investors can invest in mutual funds directly through recognised stock exchanges Whichever mode of investment is used to make online mutual fund investments, do not forget to take the help of a mutual fund calculator to calculate your returns. A mutual fund calculator is a financial mechanism that enables investors to calculate the estimated returns on their mutual fund investments.

This mechanism guides you in your future planning based on estimated returns and your investment objectives.

Disclaimer: The views expressed here in this Article / Video are for general information and reading purpose only and do not constitute any guidelines and recommendations on any course of action to be followed by the reader. Quantum AMC / Quantum Mutual Fund is not guaranteeing / offering / communicating any indicative yield on investments made in the scheme(s). The views are not meant to serve as a professional guide / investment advice / intended to be an offer or solicitation for the purchase or sale of any financial product or instrument or mutual fund units for the reader. The Article / Video has been prepared on the basis of publicly available information, internally developed data and other sources believed to be reliable. Whilst no action has been solicited based upon the information provided herein, due care has been taken to ensure that the facts are accurate and views given are fair and reasonable as on date. Readers of the Article / Video should rely on information/data arising out of their own investigations and advised to seek independent professional advice and arrive at an informed decision before making any investments. None of the Quantum Advisors, Quantum AMC, Quantum Trustee or Quantum Mutual Fund, their Affiliates or Representative shall be liable for any direct, indirect, special, incidental, consequential, punitive or exemplary losses or damages including lost profits arising in any way on account of any action taken basis the data / information / views provided in the Article / video.

Mutual Fund investments are subject to market risks, read all scheme related documents carefully.