I use Demat account to invest in MF.
What is the other way to invest in MF ??? I am not aware of any other mode.
HDFC Balanced Fund – as per present market scenario is it wise to do lump sum investment in it other than FD, considering the horizon for more than 5 yrs.
In Demat Account if I have started SIP in a fund, at the end of the term ie say 3yrs.If it still stays in my Demat account does it cause any problems etc
Thanks in advance
Sachin-If you already completed the KYC process then the best and cheapest available option to invest in MF is DIRECT. Once the folio numbers created then individual mutual fund companies provide you online access. However, there are other options which are through online advisers like FundsIndia.
The way you are investing (through Demat Account) is the costliest form of investing in MF. Think and move.
Once you complete your SIP period then either you continue or discontinue Demat account. For your information, DEMAT ACCOUNT IS NOT REQUIRED TO INVEST IN MUTUAL FUNDS.
Basu, a quick silly question.. I am aware of fundsindia and demat trading..can you let know what is DIRECT investment option(as u mentioned it is best cost effective method) and how it can be achieved ?
Raje-It is exactly like buying a commodity directly from producer without any brokers or agents. In finance terms like buying online term insurance without an agent. The cost of middlemen completely removed and the same will be reflected in NAV with a difference of around 0.5%. When you invest in long term then this saving of 0.5% matters a most. You can read my blog post on the same.http://www.basunivesh.com/2013/04/11/mutual-fund-direct-plans-who-can-move/http://www.basunivesh.com/2015/01/19/online-mutual-fund-investment-is-really-a-direct-investment/
Thank you Basu.. Just to confirm what i think is right, buying a MF policy from a person in HDFC Bank is different from HDFC Mutual Fund and we can get direct plans only in HDFC mutual Fund house. Dont the person put their reference number in HDFC Mutual Fund house as well ?and if so wont they be commissioned? And does the HDFC Mutual Fund house hosts only HDFC related MFs or even from other houses like Franklin, Axis as well?Also a quick question, the DIRECT you mentioned above is not referring to the DIRECT in any fund -ex. “Franklin India Bluechip Fund-Direct Plan (Growth)” ?
Raje-To avoid such mis-selling from HDFC MF, you have to enter as DIRECT in ARN (Adviser code) field and along with that, mention as DIRECT in front of fund like HDFC Top 200-G-Direct. If you do that then even HDFC MF can’t do it as regular. HDFC MF will only sell it’s products only but not any other MF products. As I said above, if your investment is direct then you must mention as DIRECT in ARN field and also in front of fund like “Franklin India Bluechip Fund-Direct Plan (Growth)”.Hope your doubts cleared.