Investing in mutual fund schemes through a systematic investment plan (SIP), the best option for beginners. Through the SIP you will be able to invest a fixed amount regularly in a mutual fund scheme of your choice.
Investing offline in a direct mutual fund scheme can be done by visiting the branch of the fund house, or in a regular plan through a mutual fund agent.
If you are new to mutual funds and want to invest in a fund, then you should go for a scheme based on your investment objectives and risk tolerance. Depending on your convenience, you can invest in a mutual fund online or offline.
Investing offline in a direct mutual fund scheme can be done by visiting the branch of the fund house, or in a regular plan through a mutual fund agent/distributor.
To invest in direct mutual funds online you can visit the website of a fund house, wherein you will be needed to complete your eKYC for KYC (Know Your Customer) compliance. You can get your eKYC done by submitting Aadhaar and PAN details and then you will be able to invest in the scheme of your choice. After that to invest in a mutual fund login as a guest or register yourself. Also, you can get your KYC completed at a KYC Registration Agency (KRA) before investing in mutual funds.
Most suggested by industry experts is investing in mutual fund schemes through a systematic investment plan (SIP), the best option for beginners. Through the SIP method of investing in a mutual fund, you will be able to invest a fixed amount regularly in a mutual fund scheme of your choice. You can invest as low as Rs 500 per month through the SIP in any mutual fund scheme.
Investors can also invest in mutual funds through STP. STP (systematic transfer plan) allows the investor to periodically transfer or switch a certain amount of units from one mutual fund scheme to another mutual fund scheme. However, the switch can only be done between schemes of the same mutual fund house. Depending on the market conditions, experts say one could consider an STP from an equity scheme to a debt scheme or vice versa.
Investing in mutual funds through Demat account
You can also invest in mutual funds through a Demat account through any depository participant or with your stockbroker. With a Demat account, the mutual fund units are held in the dematerialised form, which can be bought or sold through the Demat account just like shares. The Demat account can hold stocks, mutual funds along with other securities.
With a Demat and trading account, you can buy and sell units of mutual fund schemes. However, note that there are charges which are higher as compared to other modes of investing in mutual funds.