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how to invest in mutual funds

How to invest in Mutual Funds?

You can invest in mutual funds through various modes – self investments through online channels, through a bank, agent or a distributor. You can invest in various forms like Systematic in small installments or one-shot in lumpsum amounts. To start investing you should be prepared with basics like PAN card, bank account in your name and be KYC (Know Your Client) compliant. KYC is mandatory and without it you cannot make any new investments. Armed with the basics you can now choose the investment method that best suits your convenience.

Offline investment – Through a distributor or broker
  • Contact a distributor or agent of mutual funds. You can find these personnel in your bank, a mutual fund company or a brokerage firm.
  • You need to fill in an application form which will contain basic details like your name, address, PAN card number, your email id, mobile number etc. Please cross check your email id and mobile number as they will be used for further communications.
  • Attach copies of relevant documents along with a cheque or demand draft of the amount you intend to invest in the mutual fund scheme
  • Your agent or distributor will submit your application form along with the documents and cheque to the mutual fund company.
  • If everything is in order the mutual fund company will permit you to invest and assign a folio number for that particular investment and issue an account statement.
Online investment via Moneyfront
Step 1: Login
  • Go to the Moneyfront login page
  • Enter your first and last name, email address, password and mobile number. We will send you an OTP on your email address and mobile number.
  • Using this OTP you can verify your details and create your account.
Step 2: KYC Compliance check
  • Enter your PAN card number and date of birth
  • Authorise Moneyfront to access the CVL database and check you KYC Compliance status
  • To ensure maximum security we will send an OTP to the mobile number and email address linked to your KYC Status.
Step 3: Personal Details
  • If you are KYC compliant, your personal details will be auto-populated.
  • You can choose to modify your correspondence address, if you please.
  • You need to select what type of account you are eligible to hold and your residential status.
  • If you wish to, you can appoint a nominee.
  • Finally, you need to upload a scanned copy of your PAN card.
Step 4: Bank Mandate
  • Enter your IFSC code and your Bank particulars will be auto-captured.
  • Fill in your account number and upload a cancelled cheque that is linked to your account to verify your bank credentials
  • After completing the first two mini-steps you can add upto 5 bank accounts, if you like.
Step 5: Other Regulatory Details
  • This section will capture few additional mandatory KYC fields.
  • It will check on our FATCA & PEP status
  • Last, it will also capture your tax and residency status

Incase you are not KYC compliant, after you fill in all the details till STEP 5 all the information will be automatically filled in the KYC application form. You need to take a printout of the form, sign it, attach your PAN card photocopy & address proof and send it to Moneyfront on our registered address. We will take care of the rest for you.

Investment by SIP

Investment in Mutual funds can be carried out either through paying a one-time lump sum amount or through a systematic investment plan that debits a predetermined sum of money to be invested in your favourite scheme at regular time periods. Investing in an SIP is quite similar to investing in lump sum. The only difference is that along with all the documents you also need to fill-up an SIP mandate form and choose between paying the payments via auto-debit facility from your account or post-dated cheques.

Whether you decide to invest online or offline, you will require the following documents: Photograph, PAN card, Name and Address proof, Bank Account Details and KYC Compliance.

Investing offline or from your mobile you could be charged various distribution charges and this will directly impact your mutual fund returns. To avoid these charges on your investment you can invest online in the Direct plan of mutual funds via Moneyfront. We charge no upfront or trail commissions ensuring that the mutual fund returns are transferred to you.