To everyone new to mutual funds and who wants to invest in a fund, you should go for a scheme based on your investment objectives and ability to take the risk. It will depend upon your convenience, you can choose to invest in a mutual fund online or offline.
To invest in direct mutual funds, here you can visit the website of a fund house, where you have to complete your eKYC for KYC (Know Your Customer) compliance. You can complete your eKYC by submitting Aadhaar and PAN details and then you will be able to invest in the scheme of your choice. After that to invest, just login as a guest or you can register yourself. Also, you can easily complete your KYC at a KYC Registration Agency (KRA) before investing in mutual funds.
The best ways suggested by industry experts are investing in mutual fund schemes through a systematic investment plan (SIP), the best option you can try as a beginner. Is through the SIP method of investing in a mutual fund, you will be able to invest a fixed amount regularly in a mutual fund scheme of your choice. You can start your investment as low as Rs 500 per month through the SIP in any mutual fund scheme.
You can also invest in mutual funds through STP. STP stands for systematic transfer plan allows you to periodically transfer or switch a certain amount of units from one mutual fund scheme to another. However, you can only switch them between the schemes of the same mutual fund house. It depends on the market conditions but experts say one could use an STP from an equity scheme to a debt scheme or vice versa.
You can also try investing in mutual funds through a Demat account.
Investors can also consider investing in mutual funds through a Demat account through any depository participant or with your stockbroker. With a Demat account, the mutual fund units are held in the dematerialized form, which you can easily buy or sell through the Demat account just like shares. You can hold stocks in a Demat account, mutual funds along with other securities.!
With a help of a Demat and trading account, you can effortlessly buy and sell units of mutual fund schemes. However, you should note that there are charges which are higher as compared to other modes of investing in mutual funds.