KNOWLEDGE CENTRE Mutual Fund Basics / How To Buy Mutual Funds Online?

How To Buy Mutual Funds Online?

How to buy mutual funds online

Just like there are many mutual funds schemes to choose from, there are many ways to buy mutual funds as well. With mutual funds, you have to think of long-term investment as it is the best way to gain more returns. Hence, buying the right mutual funds is important. It is like getting the right kind of stocks to buy.

Below are some of the different ways to buy mutual funds.

How to buy mutual funds online?

Online mutual funds allow you to do all the transaction sitting at home. So, how can one buy mutual funds online? No need to get confused as below are the best 4 ways to get mutual funds online.

Buying Mutual Fund form AMC Website

In today’s time, all the mutual fund companies give the option of online investment facility. You can visit their website to buy mutual funds online. There are a few pros and cons with this kind of investment. The major disadvantage is each house will need registration with a separate id and password. Although once you register with fund house, investment becomes easy.

Purchasing mutual funds from Independent Portals

The online portals allow you to invest in mutual fund scheme as they give basic research about the mutual fund schemes.

Buying mutual funds from Online Brokers

The online brokers are also the same distributors who also work as share brokers. The advantage with online brokers is that one need not have KYC for each fund house.

Purchasing mutual funds online from Bank Website

The banks also sell mutual funds, especially with their group companies. If investing with banks, one does not need to have a KYC again. The investors can buy mutual fund online with the online banking platform. But, buying from the banks is not a good idea as they push the schemes of their group companies.

So how to buy mutual funds which are right and gives you most returns? It is always better to have a diversified portfolio. A tip for a good portfolio is having a fund strategy which includes mixed bonds and stocks fund as well as funds from national and international markets.

Two ways to buy mutual funds are:

  1. Direct plan
  2. Involving intermediaries

Direct Plan:

These plans are ideal for someone who does not appoint a distributor and have a lower expense ratio as compared to the existing fund scheme of the Asset Management Company. This means, you as an investor will have a higher chance of earning better from your mutual fund despite having the same portfolio. However, it has disadvantages if the investor is not financially sound. The decision-making might not be the right one. Hence, it is better to involve a fund manager.

Involving intermediaries:

All the intermediaries like banks, online brokers, and financial advisory companies have to be registered with the Association of Mutual Fund in India (AMFI). The Association of Mutual Fund in India (AMFI) has an online directory that provides you a list of intermediaries that allows you to buy/invest in mutual funds.

Angel Bee is one such intermediary that makes the entire process extremely easy and quick. Also, it recommends the best performing mutual funds for you through its AI-based investment engine, ARQ. It gives you a personalized suggestion based on your investment objective, risk appetite etc. So download the app today and start your journey towards a richer future!

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