Investing in mutual funds made simpler

You must already be aware of the fact that there are several mutual fund schemes that you can take your pick from. You can also take recourse to many investing methods for them. There are options for both online and offline investment, or direct as well as regular plans, if you are wondering how to invest in mutual funds in India. There are benefits and restrictions in case of every type of plan that is available.

1. Direct Plan: Mutual fund firms have launched this new plan under all their fund options that exist and this is known as the Direct Plan. Launched from the 1st of January, 2013, this is a great option for people who do not go to distributors for deploying investments in mutual funds and can ensure lower expense ratios as pitted against existing AMC fund options.

2. Via intermediaries: There are several intermediaries that can be taken into account in this case and this includes several distribution organizations, leading banks, individuals, companies that offer financial advisory services and a few stock brokers.

3. Through IFAs: IFAs are basically people who are working through their agents for enabling investments in mutual funds. They are called independent financial advisors and they offer help when it comes to filling up the form which applies for the mutual fund investments. They also help in the submission of the form with the asset management company.

4. Directly with the AMC: If you are a first-timer, you may have to go to the AMC’s office to make your investment. Thereafter, future investments can be made online or offline, in different fund schemes of the same AMC, using the folio number in your name.

5. From online sites: There are multiple third-party online sites which can help you make investments in several mutual fund plans available across asset management companies. There are options for easily transferring funds since many of these sites also have collaborative tie-ups with leading banks.

6. Via the bank: Your bank can also be a major intermediary when it comes to offering mutual fund plans from several asset management companies or AMCs.

7. Through Demat and online trading account: mutual fund schemes can be bought or sold through your Demat account.

Besides, the other ways include, electronic money transfer, electronic clearing service (ECS), national electronic fund transfer (NEFT), and so on.