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How to invest in mutual funds online

There are 4 ways in which you can invest online in mutual funds

Direct Online Investment at the mutual fund companies’ websites:

If you are an existing investor of a particular mutual fund company you can start invest online by going to the website of the company. If you are a first time investor of a particular mutual fund company with a valid KYC, the mutual fund company will first check for the KYC validity from your PAN when you register online. If they find that you are KYC compliant, then they will generate a folio number for you and you can start investing online. If you do not have a valid KYC, you need to submit the KYC documents to the mutual fund company. Once you have a valid KYC, the company will generate a folio number for you and you can start transacting online.

Investing through online portals:

There are several online portals like fundsindia.com and fundsupermart.com through you can invest in mutual funds. To invest through the online portals your KYC has to be registered. Some of the portals can also help you with getting your KYC registered. One of the advantages of investing through an online portal is that you can view your entire portfolio (investment in mutual funds of different companies) in one place. However, you should know that these online portals are registered mutual fund distributors like your financial advisor and earn commissions from the mutual fund companies. Hence investing through them is not necessarily cheap.

Investing through your online demat account:

Some brokers who provide online trading and demat services, also offer online investment in mutual funds. Brokers who offer this service like ICICI Direct, India Infoline, Anand Rathi, HDFC Securities, Sharekhan etc are registered mutual fund distributors.

Investing through registrars (CAMS or Karvy):

CAMS or Karvy also offer online mutual fund investment if you have a valid KYC. However, you cannot invest in all mutual fund companies through CAMS or Karvy. Investing online through CAMS or Karvy offers you the benefit of portfolio viewing, like online mutual fund investment portals and demat accounts.

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