Investing in Mutual Fund Direct Plans Online in India: A Comprehensive Guide
Investing in mutual funds is a popular way for individuals to grow their wealth. In India, buying mutual fund direct plans online is more convenient than ever. Here, we explore the various platforms and methods to invest in mutual fund direct plans, providing a comprehensive guide to help you make the best investment choices.
Popular Online Platforms for Direct Mutual Fund Investing in India
With the rise of digital infrastructure, several platforms are now available to facilitate the direct purchase of mutual funds in India. Here are some of the most popular options:
AMCs Official Websites
Asset Management Companies (AMCs) like HDFC SBI, ICICI, and others offer direct investment options through their official websites. These platforms are typically user-friendly and provide a secure and straightforward process for investors.
Mutual Fund Aggregator Platforms
Groww – This platform is known for its user-friendly interface. Investing in direct mutual fund plans is simple and fast with Groww.
Zerodha Coin – Zerodha Coin offers direct mutual funds without any commission, making it an attractive option for cost-conscious investors.
Paytm Money – Paytm Money provides access to direct mutual funds, integrating seamlessly with the Paytm ecosystem.
ET Money – A robust platform with multiple tools for tracking investments, ET Money also allows you to invest in direct plans.
Kuvera – Kuvera focuses on direct mutual funds and offers goal-based investing features, making it a preferred choice for goal-oriented investors.
Online Brokerage Firms
Many online brokerage firms offer access to direct mutual funds, allowing investors to manage both stocks and mutual funds in one place. Examples include Sharekhan, Angel Broking, and including research capabilities to provide a holistic investment experience.
Robo-Advisors
Some robo-advisors, such as Zerodha's Razor Financial, offer direct mutual fund investments as part of their investment portfolios. These services use algorithms to tailor investment plans based on your risk tolerance and financial goals.
Understanding Mutual Fund Direct Plans and Investing Methods
Before investing, it is crucial to distinguish between direct and regular (or open-ended) mutual funds. Investing directly with the asset management company (AMC) is known as a direct plan. In this case, the investor does not require an intermediary. On the other hand, intermediary institutions provide and facilitate investing in a number of mutual fund schemes. The AMC and fund houses offer online platforms to allow investors to easily contact them and start their investments.
Investing in a Direct Plan
To invest in a direct mutual fund plan, you can visit the main website of the concerned AMC and follow the necessary steps. The registration portal will ask for your personal details, bank details, and PAN card details. Once you submit this information, you can start your investment process very quickly. This approach ensures a seamless and convenient portfolio management process.
Investing through an Intermediary
For investors who wish to invest in multiple funds from different AMCs, it may be more convenient to contact a financial institution acting as an intermediary, such as IIFL Securities. These institutions have online portals where you can complete the due process and fill the KYC norms to start investing in the funds of your choice. Dedicated apps are also available to invest in funds from different fund houses, providing convenience and accessibility.
Conclusion
Investing in mutual fund direct plans online in India is flexibility for investors. By understanding the various platforms and investing methods, you can make informed decisions and choose the best option to suit your needs. For more information or personalized advice, contact a financial advisor or an intermediary to guide you through the process.