To invest in mutual funds in India, the individual investor has to be Mutual Fund KYC compliant. Mutual Fund KYC is a simple process for which you need to fill up a KYC form giving your personal, communication and professional details. You also have to affix your colour photograph and sign across. The KYC form should be supported with your self-attested ID and address proof.
To know more, read here about how you can do Mutual Fund KYC
To invest in mutual funds in India, there are mainly 5 ways by which you can invest in any mutual fund scheme of any AMC -
Through your Financial Advisor
This is the most popular and traditional way of investing in mutual funds in India. AMFI (Association of Mutual Funds in India), an industry association of all the SEBI approved AMCs, provides licenses (which are called ARN No.) to Mutual Fund Distributors so that they can advise and help investors on their mutual fund investments.
A good financial advisor is expected to provide end to end to services, including collecting KYC (Know your Customer) documents, do in-person verification (IPV) of the client, filling up the application form, collect the investment cheque and submit them for processing with the respective AMCs (Asset Management Companies).
Most financial advisors do not charge any fee from the investors as they are compensated by way of commission from the AMCs with which they are registered.
Investor should invest through a mutual fund distributor or through his financial advisor. Before investing through a mutual fund advisor, however, you should check if he / she has a valid AMFI license.
You can check the validity of AMFI License of your Mutual Fund advisor from here https://www.amfiindia.com/locate-your-nearest-mutual-fund-distributor-details
Invest directly with the Mutual Fund companies (AMCs)
You can visit the office of the mutual fund company (AMC) in whose scheme you want to invest and invest directly. If you are investing for the first time, the AMC will do the needful in terms of making you KYC compliant which also includes in-person verification (IPV).
Most of the AMCs in India now provide transactions through their mobile App too. You can download the App on your mobile and transact in mutual fund of the respective AMCs.
Post your investment, the AMC will send you the account statement by email and through post.
Invest through Mutual Fund R&T agent’s websites or Mobile App
CAMS or Karvy are the two registrars (R&T agent) who process almost 95% of the mutual fund industry transactions and do record keeping and accounting on behalf of the mutual fund companies (AMCs). You may visit the office of R&T agents and submit the mutual fund application forms there, just like investing directly with mutual fund companies.
While submitting the application you can mention your Mutual Fund Distributor’s ARN number on the application form or otherwise you can invest in direct plans of mutual funds.
These R&T agents have also launched Mobile Apps, which you can download on your mobile and transact.
Invest through online portals
There are several online mutual fund portals (started by various mutual fund advisors) including us http://meetplutus.com through which you can invest in mutual funds.
To invest through the online portals your KYC has to be registered as the online platform will first verify your KYC before you proceed for transactions. 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 AMCs) in one place. These online portals are registered mutual fund distributors and empanelled with AMFI www.amfiindia.com.
A good online portal helps you plan your investments by providing automated tools on their website. For example – you can check a tool on our website which helps you plan your financial goal - Plan your financial goal
You can plan your financial goal on our website and start investing online after signing up on our website http://meetplutus.com/signup
Invest through your demat account
If you have a share trading account with any broker who provides online trading and demat services, you can buy mutual funds and keep them in your demat account just like shares. Likewise, when you want to redeem your funds, you have to contact your share broker and sell the funds from your demat account.