We all know that investing in mutual funds is the key to getting rich. But with SEBI doing away with entry load charges, many mutual fund brokers have stopped dealing in mutual funds, as they would get their commissions from the entry loads. Instead now it has become mandatory for them to get their fees from their customers. But since they had never actually looked after their clients’ needs and since India never had the culture for paying for the investment advice, the brokers lost their source of their income.
So if you want to invest in the mutual funds, and don’t have time to make frequent trips to the fund house, you can opt for online option. Most mutual funds have tie-ups with many leading bans (except cooperative banks), to allow their customers to invest in their numerous schemes. In fact today, you can do all those things online for which you had availed of the broker’s services.
Now if you want to start investing online here’s how to go about it.
- If you are an existing investor: Then in that you have already completed the formalities to open the account. You just need to apply for the PIN, to get online access. Most of the fund houses have a tie-up with CAMS to handle their customer service requirements. You can visit the CAMS site and get all the necessary details. Once you get the PIN, you can login on the fund’s site to do the transactions.
- If you are a new customer: Then you need to open an account. You need to fill the account opening form, submit a cheque for the investment amount along with the PAN card and KYC. The cheque will vary from scheme to scheme, starting from Rs 500 for tax saving mutual funds to Rs 1 lakh and above for some liquid funds. With effect from 1st Jan 2011, it has become mandatory to submit the KYC. If you don’t have it, the fund house will do it for you, free of cost. Now when filling out the form, you can select for online option. In that case, you will get the PIN once your account is opened
After you get your PIN, you are all set to invest online.