Now you can do almost all transactions in mutual funds online. Though this option is in existence for some time it will become attractive for you once the direct plan option of mutual funds start offering better terms from 2013.
How to buy mutual funds online?
If you want to invest online, the process starts with the offline mode. For example, if you want to invest in any scheme of HDFC mutual fund online, first you should invest in any of the schemes of this fund house through the offline mode and get a folio number. Once you get the folio number for this investment, you have to visit the website of the fund house and download the form for applying for a PIN. Some fund houses will allow you to apply for PIN online, while in other cases, you have to send the application by courier/post. Once you get the PIN, you can start online transactions.
Down load the application form of the scheme you want to invest in from the website of the fund house. Fill it up and submit it to the fund house branch or at the CAMS /Karvy office along with DD or cheque favouring the scheme. Please attach a copy of your PAN Card and the KYC status print out. Don’t forget to mention your email address and mobile number in the application form. Also, mention your PAN number, bank account number with IFSC code and MICR number. You will receive the account statement from the fund house within a week along with the folio number/account number.
Down load the application for PIN from the website of the fund house and fill it up with your folio details. Send it to the fund house for creation of PIN. You will get your PIN number through an email within a week. Some fund houses are allowing you to create a PIN online through their website. After receipt of your PIN number, you can start transacting online.
For your existing mutual fund folios, please visit the website of the fund house and apply for PIN. If they permit you to create PIN online, do that, otherwise print the application for PIN and send it to the fund house.
Which transactions are permitted online?
Once you are having a PIN, Folio number and your mobile number and email address is registered with the fund house, you can do the following transactions online.
- Buy any fund from the same fund house.
- Switch among various schemes of the same fund house.
- Redeem units and get the amount credited to your bank account.
- View and download account statements from the website.
- Start transactions like SIP, STP or SWP.
You will get email/mobile confirmation after each transaction to ensure safety of transactions.
Before opting for this, please confirm whether the fund house is having a tie up with your bank for online transfers. Most private sector banks have such tie up with most of the leading fund houses. You should also activate the online banking facility to do such transactions.
This is a onetime process and if you activate this with each fund house, you can do all future transactions online from the comfort of your office/home. You need not run after the agent for any service issues.
But before doing this, consolidate your mutual fund portfolio into 5 or 6 fund to ensure effective monitoring and better control.