Guide to Mutual Funds
How Can You Invest in Mutual Funds?
Honestly speaking, investing in mutual funds is one of the easiest things to do. You can invest online as well as offline.
For investing the very first time, you need to complete the Know-Your-Customer (KYC) requirements. This is a one-time exercise. Next time, irrespective of which fund you want to invest in, you can simply quote your PAN and your KYC details will be available to the fund house.
In this module, we will provide you with step-by-step guidance on the process of mutual fund investing including completing KYC formalities.
To begin with, let us assume that you have already chosen a mutual fund you want to invest in.
Step 1: Create a login
First, visit the fund house’s website and create a login by providing your credentials.
Alternatively, you can also visit the CAMS website at https://www.camsonline.com/ or KFintech website at https://mfs.kfintech.com/investor/ and create a login. CAMS and KFintech are financial service providers with whom almost all mutual funds of India are registered. You can purchase, sell, register for SIP, SWP, STP from here and also track your own portfolio. They are both regulated by SEBI. Hence, you can be assured about the safety of your money.
This can also be done from their mobile app.
Here’s a list of the fund houses registered with CAMS and KFintech.
Step 2: Complete the KYC formalities
As we mentioned earlier, this is a one-time activity. First, provide your identity and address proof and complete the KYC formalities. You can do this either from the fund house’s website or through CAMS or KFintech. Once your KYC is done, the data will be available online for future use.
Step 3: Create a folio
If you are investing for the first time with the fund house, you may be asked to create a folio. Input your details, and the folio will be created. It only takes a few seconds.
Step 4: Purchase the mutual fund
Finally, click on the purchase button, fill in the details such as your chosen fund, mode (regular or direct), option (growth, dividend payout, dividend reinvestment), lump sum or SIP, amount of investment, and others.
Once done, click on submit. You will be requested to provide your bank account details and upload the picture of a cancelled check so that the bank details can be verified.
That’s it! Your purchase will be complete.
You will get email and SMS notification of the purchase and receive the account statement over email after a few days.
Offline investing process is similar to online, with a few differences only:
1. You do not have to create a login
2. You have to fill up physical forms for KYC and purchase and provide photocopies of your id and address proof.
3. You will have to issue a cheque for paying the purchase amount.
The online mode is easier and more convenient. You can track your portfolio regularly & sell at the right moment without being dependent on an agent or having to visit the fund house office.