If you are planning to diversify your portfolio then you shall consider investing in mutual funds. Mutual funds are less risky and provide you with professional fund management. In this digital age now it’s possible to invest in mutual funds online through the website or mobile app.
There are so many direct mutual fund apps available in the market, you can select the best as per your needs. ET Money App is also a unique app which allows you to invest in mutual funds conveniently. In this article, we will understand how you can start investing in mutual funds online.
What are Mutual Funds?
Mutual Fund is an investment pool created by money invested by various investors who share similar investment objectives. This money is then invested in various securities, bonds, gold etc with the objective to earn a good amount of returns.
The investment fund is managed by the fund manager. The investors are allotted mutual fund units at the current NAV for the investment done by them.
5 Easy Steps to invest in Mutual Funds Online
Many people are still confused about investing in mutual funds online. Here is the 5-step process to help you with the same.
- Visit the Online Website or Portal/App
The first step towards investing in mutual funds online is by visiting the website or online portal/app. You can research a bit about the same before you start your online investment journey. There are so many online ways to invest in mutual funds.
You can visit the AMC website, Broker or Demat account website or investment portals like ET Money App to invest in mutual funds. If you are new to this website you need to create an account. If you are already a member then you can directly log in to the website or app.
- Complete the KYC
As per the SEBI guidelines in order to invest in mutual funds you need to complete the KYC process. In order to invest online your PAN shall be KYC complaint. If you are visiting the website or portal for the first time then you need to get a PAN KYC complaint by following the process mentioned on the website or portal.
But if you are already a member and have done PAN verification in the past, then your PAN is already KYC Compliant. You are eliminated from the KYC process.
- Choose the Mutual Fund to Invest
After completing the KYC process now is the time to start investing. You need to select the mutual fund to invest in. Your goals play an important role in selecting mutual funds. There are different types of schemes available as per your investment horizon.
Once you decide which mutual fund scheme you want to invest in, you need to select that scheme. After this, you need to enter various details like regular plan or growth plan, investment amount, tenure of investment, bank details, nominee details etc.
- Make the Payment
After you have selected the mutual fund scheme, now is the time to make payment online. Majority of the online portals or websites will direct you to the payment gateway. Here you will get various options for online payment like UPI, NEFT/RTGS etc. You can choose any of the payment options.
- Get Transaction Confirmation
Once you make the payment, you will get the transaction confirmation. The website or portal/app will confirm you the payment along with scheme details. If your transaction is processed before the cut-off timings then it will be considered for the same day. But if the transaction is processed after the cut-off timings then it will be considered for the next business day.
After going through this article you have gained enough knowledge about investing in mutual funds online. You can either invest through the websites of AMC or investment portals or select any of the direct mutual fund apps available in the market.
Santosh Kumar, He is a SEO + Blogger have 12 years of experience in writing tutorial, informative and product reviews topics.