How to Invest in Direct Mutual Fund?: Mutual Fund direct plans are the first selection or the choice to choose to do it yourself to the traders or the investors. The fact or the reason behind this is that it is simple and easy in the sense to execute the investment in the direct mutual fund. The need of the distributor is eliminated in the direct mutual fund. Through this article, we will come across the pattern of investment in the direct mutual fund.
What is Mutual Fund?
A Mutual Fund is the collective pool of the money invested and that is managed by the active fund manager. The money that is invested in accordance with the particular individual trader or the investment objective of the fund. All the Mutual Funds houses are registered with SEBI and follow the strict rules and regulation stated by them and they did this to protect the interest of the investors.
How to Invest in Direct Mutual Fund Online?
You can directly invest in the direct mutual funds online through the multiple options but first of all, before starting, you need to have PAN Card, Aadhar Card, and Bank account details like account number, IFSC Code, MICR etc. and the online banking transaction login details. For the first time investor in the mutual fund needs to complete their KYC (Know Your Customer) procedure. Mutual Fund KYC can be done online within a few minutes and with easy steps.
Invest in Direct Mutual Fund through Website
By the time you decide in which fund you want to invest, you can easily invest in mutual fund schemes direct from the online portal of the Asset Management Company (AMC). After completing the KYC process, the individual can invest in direct plans easily from the website portal with easy steps mentioned below:
1. Get yourself register with the Mutual Fund Company
Majority of the mutual fund requires the individual to open their account with them first. The personal information will be similar as stated above and that only required in the mutual fund application form. Some of the mutual fund houses may ask you for some basic registration first and then detailed information about you while completing the transaction. This process can be changeable from one mutual fund company to another company.
2. Select the desired schemes and the investment details
When you come across for the investment selection of the online form, you need to choose the “direct” as the plan type. Also, please double-check or cross-check the scheme option in order to get sure about. Under the direct plan, you will get the two option category like the growth or the dividend option. Choose that option which will complete your financial goals.
After that, you will need to register the investment details such as:
Investment type – that can be lump-sum, one-time payment or through the SIP method
Holding pattern – Non-Demat or Demat account
Mode of payment – Net banking, Debit card, Credit card, NEFT etc. This options will be different from across the AMC’s
Bank details – Bank name, IFSC Code, Account Number, Account type. You can also then asked to confirm the branch address and the MICR Code.
3. Verify and complete the transaction
After completing and submitting the above procedure, you will be then asked to verify the details again. Many of the trader or the investor overlook this process and proceed ahead. It is always best if you don’t proceed so fastly ahead and you need to take time to read the form again carefully. There are various errors that occur without knowing and getting them correct at the time is preferred and getting it changed later is the tough task.
Then you will need to authenticate the form submission through a One Time Password (OTP) that is to send to the registered mobile number or the email address. Once the verification is completed successfully then you can move to the next page using the mode of payment that you had selected in the earlier step.
You will be then provided by the transaction reference number and there is a note down mentioned on that which will be helpful for the individual if they get any errors during the transaction process. After that, by the time the payment gets to be successful, you will get the confirmation mail on your mobile or email id or both.
The above procedure completes the investment in the direct plan in the mutual fund through the specific fund house.
Conclusion
So, one can easily invest in the mutual fund directly without interrupting of the mediator. It will also help in getting charges with lower cost with a comparison of the other mutual fund schemes. The difference is negligible but with the power of compounding the difference in the value, terms become less. One can also get to know about the process and the terms while getting registering in the mutual fund plans.
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