If your KYC has been completed then you can invest in mutual funds directly offline or online. If you feel uncomfortable in transacting online, you can go to the nearest branch and invest in the fund.
Mutual Fund Investment: Investment in mutual funds has increased rapidly in the country. The good returns on this have attracted people towards them. Some funds have given more than 100% returns in a single year. But often people face the problem that how to invest in mutual funds.
We can invest in mutual funds in two ways. One can invest money through any investment platform. Where their fund manager invests the money in different mutual funds. Another way would be to invest directly in mutual funds. Here we will know in detail how to make direct investment in mutual funds.
KYC Required
If your KYC has been completed then you can invest in mutual funds directly offline or online. If you feel uncomfortable in transacting online, you can go to the nearest branch and invest in the fund.
Online is the easiest way to invest directly in mutual fund schemes and you don’t even have to pay commission. You can invest online through the fund’s website or its RTA site or through its fintech platform. You have to manage multiple logins when investing directly on the fund’s website.
Direct plan investment
Investing in a Direct plan means that you take on the responsibility of creating a financial plan, choosing the best funds for your goal, managing your portfolio regularly and making adjustments when needed.
Not everyone knows how to choose the right fund and manage the portfolio in mutual funds. So the direct plan is for those investors who can do it easily. Otherwise, people who are less knowledgeable about mutual funds are advised to invest through distributors.
Direct mutual fund investment
There are many fintech companies that offer direct mutual fund investment platforms for free or for a fee. Most of these platforms are registered with SEBI hence are well regulated and governed by the security and privacy guidelines mandated by SEBI. Nowadays even Fortune 500 companies can be hacked and so can mutual fund platforms. However, its chances are absolutely negligible.
Money is safe
Since most of the direct platforms are currently owned by startups, which were not in the market for a long time, there may be a possibility that some of them may have been closed or bought by large companies. But you need not worry about your investments made by these registered platforms. Even if these platforms may not exist in the future, as the money invested by you goes into the account of the mutual fund and the fund has a SEBI accredited registrar to keep track of your investments.
You can always approach the fund house to access your investments. If you are happy with your user experience, fees, its services and if you have confidence in the founding team, then choose Direct Platform. Don’t worry about their future and your investments made through them. They will always be safe with the fund house.
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