One of the biggest concern of today’s internet savvy investors is that how to invest in Mutual Funds in India online? Currently, we will find many such options. But which one is best suitable to you?
Below I listed them briefly for your understanding and I hope your all queries will get answered about choosing the right mode of investment.
1) Through Agents or Brokers-This is a typical way of investing in India since long. In this option you choose the agent and calling him, he will come to your doorstep and fulfill all necessary formalities like collecting necessary documents for KYC purpose, taking signatures and submitting the forms to respective mutual fund companies. You no need to bother about processing part. He will earn commission directly from mutual fund companies which is adjusted against your NAV. Hence you will not notice the expenditure part in your account statement too. But in reality, if you stay invested for long then he earns more than any insurance agent.
Mutual fund commission is structured in such a way that if you stay long and invested amount grows well then your agent will also earn more. But nothing is free in this world. Hence if your agent is providing service like completing all formalities related to processing, helping you in choosing the right fund based on your requirement and providing you the post-investment service too then I don’t think you can stay away from his/her service, especially new investors who does not know about basics of mutual fund. But the question to be asked is, whether he is capable of providing all service to you or just acting as courier agent who delivers your signed copy of documents to mutual fund companies is question you need to check out before going with any agent or broker. This type investment is completely OFFLINE mode for you.
2) Mutual Fund Companies-All mutual fund companies provide you to invest directly. Here in this mode of investment first you need to download the forms, submit it with filling and submitting the necessary documents (if KYC not done previously). Once the folio (it is like your bank account number and will be unique) generated then you can invest online. Here there are two options for you to choose. One is a normal plan where distribution expenses are adjusted to NAV and another format is Direct Plans where there is no distributor expenses and cheaper to normal plans. The detailed difference is already written by me in my previous posts about Direct Plans and how one can opt for Direct plans. Below are the related posts on this topic in detail.
So in my view, if you are a totally informed investor (it is hard to judge one’s knowledge himself 🙂 ) then it is always a best cheap option to go for DIRECT PLANS. Otherwise, go for normal plans.
3) Through Online Portals-Many have a great misconception that investing through online portals like FundsIndia or Fundsupermart is best and cheapest mode of investment in mutual funds (exactly like buying online term insurance). I agree that they offer you a great convenience of investing Online and you can review all investments at one place. But still, this type of investment is as much as like choosing the broker (who is not charging you any upfront commission directly) or investing through mutual fund companies normal plans.
These online portals even though not charge you anything upfront as cost, but still they collect the commission from mutual fund companies and will be adjusted to your NAV. This option is best to those who are looking for investing online, convenient for tracking their investment and one point of a solution to all your investment quarries irrespective of mutual fund companies. But the cost wise considering, this type option still costlier to DIRECT Plans.
4) Through online Demat Accounts– This type of investing is through your demat accounts where you use this account for your stock trading or holding stocks. These stock brokers such as ICICI Direct, HDFC Securities or Sharekhan offer you investing in mutual funds. But usually, each SIP or investment is charged here directly from your investments and also they receive the commission from respective mutual fund companies. So even though this option seems to be online but costlier than the option of Online Portals.
5) Through CAMS or Karvy-These are like middlemen between you and mutual fund companies for record keeping and processing and will be appointed by mutual fund companies. You can invest through them also exactly like what I mentioned in POINT 2. Currently, they offer online investments only for selected mutual fund companies. But the great convenience of service they provide you is to view your all portfolio at one place and you can request consolidated account statement from them (irrespective of who the service provider) by submitting your request. Visit below links for the same.
Karvy-Requesting Consolidated Account Statements -Karvy/CAMS/FTAMIL/ SBFS
CAMS-Requesting Consolidated Account Statements-CAMS/Karvy/FTAMIL/SBFS
Even CAMS offer you the service of Portfolio creation and maintenance of mutual funds, Listed Equity Shares, Bonds, Savings Schemes, Insurance, Commodities, Real Estate etc.
You can check the details HERE.
6) Banks-Last but not the least in this category are through Banks. Banks usually have access to your account details. So they lure you to invest in mutual funds. Their only motive is SELL and are least bother about analyzing your requirement. Also, you are not sure the current employee who is very much friendly with you now may be there for long in the same bank and branch to guide you in future. Hence it is always best to AVOID investing through Banks.
So there are many ways to invest in India either online or offline according to your comfort. Choosing the right service for investing will actually ease your life. Hope I covered all the options available in India currently.
7) MF Utility–MF Utility actually integrates all stakeholders of the industry like investors, mutual fund companies, and service providers on one online platform. This is an initiative by AMFI (Association of Mutual Funds in India) under the approval of SEBI. The beauty of this platform is, you can do all mutual fund transactions under one roof, irrespective of a Mutual Fund Company or funds. Hence, this platform acts like “Transaction Aggregation Portal”.
This platform provides online access to investors to connect with service providers (like Karvy or CAMS), Banks, Mutual Fund companies, Payment Gateways, and KYC registration agencies (CVL KRA). Therefore, you may say a one-stop solution for investors. This facility will available for 24×7 for access.
This is owned by all mutual fund companies and operated by MF Utilities India Pvt Ltd (MFUI). I wrote a complete post on this. Refer the same at “MF Utilities-Online Investment Platform for Regular and Direct Mutual Funds“.
8) Direct Funds Providing online portals-Now there are few private players who offer you direct plans online. There are many such portals came up. One of them is Inestza. I wrote a complete post on the features of this portal. Refer the same at “Invezta.com: Invest in DIRECT Mutual Fund schemes online at one place“.
Flexi cap funds didn't exist before 2020. Here's why comparing their long-term returns to Nifty…
EPF Scheme 2026 explained fully: EPF withdrawal, EPS pension, and EDLI insurance changes with examples,…
Chasing financial freedom? Do health, time, relationships and contentment matter just as much? Sadly, we…
Your "safe" SIPs, SGBs, PPF, or Index Funds are secretly sabotaging your wealth. Peltzman Effect…
Thinking your retirement plan is foolproof? Why LUCK - not asset or fund selection or…
Nifty 50 Index Funds Vs Active Large Cap Funds — Can we really compare them…
View Comments
sir
does mutual fund houses pay commision to MF utility like other online portals ?
Thanks
Kuldeep-NO.
Hi Basavaraj,
if one is kyc complient, then we can also directly invest like in ICIC in http://www.ICICIpruamc.com,
http://mf.adityabirlacapital.com/Pages/Secured/Individual/OneABC/Login.aspx in birla sunlife after registration .Am i correct? But the problem here is to remember multiple usernames and passwords for each fund house
Krishna-Yes, you are 100% correct.
I created my KYC through online and purchased the mutual fund directly from companies but now i know that i can invest only rs 50000 in a financial year because i created kyc online so how i can i increased my limit beacuse i am investing approx 9000 rs per month through SIP in all schemes
Amit-Complete the regular KYC process and then you can enhance your investment.
Hi, Is MF investment using KARVY, CAMS or MF Utilities India FREE? If not what are the charges or any hidden commission they take?
Jigar-If your concern is COST, then why not invest in DIRECT funds using MF Utility?
If I choose direct option while selecting scheme on mycams portal, than it delivers really direct plan or just fools the investors.
Vineet-You can check the statement later and confirm.
Hi Basavaraj,
Is myuniverse.in is a right platform to invest in mutual funds online?
Please advise.
Thanks
Santosh
Santosh-It may be right for regular funds but not for DIRECT funds.
I WANT TO INVEST LUMPSOME AMOUNT IN DSP MICRO BLACK ROCK FOR 5 YRS..PLS GIVE YOUR SUGGESTION
Anokhi-No equity if your time horizon is less than 5 years.
Sir,
I am new to MFs. I wanted to invest for 5+ years through SIP channel. I have recently started a SIP of ICICI Prudential Long Term Equity Fund (Tax Saving) of 4k per month.....the MF representative told me that it will perform very well and if it doesnt I can stop paying the installment from 3rd month and can withdraw entire amount after an year.
Could you please tell me whether it is good fund to keep in a long run as i can see it is not among the top 6-7 funds currently.
Pls guide
Gaurav-Why you invested and what is your goal?
Sir, I want to get max returns for my investment with moderate risk...I already have ample FD ....Imay want to purchase a house seven to eight years years later for family currently I am 29 years. I want it for down payment...... Currently I am investing only 4k as being naive but as I will gain experience I will invest UpTo 10-15k a month.
Gaurav-Can you define please the meaning of MAX Returns and MODERATE risk?
Dear Sir,
I thank you very much for this awesome article which clearly highlights the pros and cons of various methods for mutual fund investments. I am slightly confused. I hope you can help me out.
1) I am 35 and would like to do long term mutual fund investment for myself, wife and 2 minor children? My wife is a non-salaried housewife. Should I do their investments from my account or create accounts for each of them and do separately? Should I invest everything in my name and keep them as nominees?
2) I would like to do everything myself electronically online. Which utility would be best for me so I can do select mutual funds for all 4 of us and monitor all of them online at one place?
Thank you.
MP-1) You can invest in your name and nominating your family.
2) use MF Utility.
Hello Sir,
My wife passed NISM Exam and got ARN as well.
I tried to contact FundsIndia and NJ. FundsIndia is taking 35% commission from Brokerage as informed to me. Don't know about NJ.
Any suggestion regarding distributor with which I should tie up?
Ronak-Better NJ (I am also associated with NJ).
Hi Sir,
I am 36 years now and would like to invest in MF. Planning to invest 15000 per month for 10-12 years.
Can you please suggest me a balanced MF plan ?
Also one of my friend suggested me that I should be investing in Equity, Bond and Liquid fund. Is it safe that way, if yes is there any % calculation for that and is it possible/necessary to change the % calculation after 6 years?
Can you please suggest. Sorry for writing lot of queries all together.
Thanks,
J Krishna
Krishna-Funds are listed in "Top 10 Best SIP Mutual Funds to invest in India in 2016". What your friend told is asset allocation between debt and equity.