| Mutual Funds can be a powerful vehicle to Financial | | | | - Birla Sunlife |
| Freedom. There are several websites, blogs and | | | | - ICICI Prudential |
| magazines dedicated to the same. But do you | | | | - IDFC |
| know different channels through which you can | | | | - TATA |
| invest in Mutual Funds? | | | | - Quantum |
| There are mainly 6 channels | | | | - Morganstanley |
| | | | - Kotak |
| 1. Your Demat Account | | | | - Franklin Tempelton |
| 2. Through advisors/ banks etc | | | | - UTI |
| 3. Online through respective Mutual Fund Sites | | | | - Fidelity |
| 4. Direct through Mutual Fund registrars - CAMS | | | | - Bharti AXA |
| Karvy | | | | - Mirae Asset |
| 5. Direct to Mutual Fund Offices - by post | | | | - SBI |
| physically handing over | | | | - Sundaram BNP |
| 6. Dedicated websites which offers various mutual | | | | Direct through Mutual Fund registrars - CAMS |
| fund schemes | | | | Karvy |
| We take a detailed look at advantages & | | | | Here you need to download the form from |
| disadvantages along with the process for investing | | | | respective MF site & fill it up. Attach |
| through each channel | | | | photocopy of you PAN Card & submit it |
| Demat Account | | | | physically to the CAMS/Karvy office in your city. |
| Demat Account makes sense only for people | | | | The registrar would attest your PAN card. So |
| investing directly in stock markets and so not | | | | keep the original PAN Card with you if you are |
| everyone would have it. | | | | submitting an unattested PAN photocopy. |
| Advantage: | | | | Advantage: |
| - You can buy/ redeem a MF with click of few | | | | - Its a direct channel so no commission |
| buttons right at the comforts of your home. | | | | whatsoever. |
| - You have consolidated portfolio in one place. So | | | | Disadvantages: |
| becomes easy to manage. | | | | - You need to physically go to office to submit. |
| - No tedious process of form filling or giving | | | | So not viable for everyone especially in small |
| documents every time you buy MF. | | | | towns. Every time you make an investment you |
| - Invest instantly. Suppose markets fall suddenly | | | | need to fill up lengthy investment form. But if you |
| @ 2:30 then you can invest before 3:00 to get | | | | invest in a fund which offers online investment |
| the same day NAV & hence buying at lower | | | | facility you can invest online subsequently. |
| price. | | | | For complete list of karvy/cams office & |
| Disadvantages: | | | | where you can submit your forms for different |
| - Its the most costly channel. Even with abolition | | | | Mutual Funds visit: |
| of entry load demat accounts like Reliance Money | | | | Direct to Mutual Fund Offices - by post/physically |
| charges 2.25% for buying Mutual Fund. | | | | handing overyou need to follow the same process |
| - Not all schemes are offered by all demat | | | | as in case of submitting to CAMS/Karvy. But if |
| accounts. | | | | you post it you would not be sure which day |
| Through advisors/ banks etc | | | | NAV would apply to your purchase. NAV |
| You have a financial advisor for you and you can | | | | applicable to your investment is the day when the |
| buy from him directly. You just need to call him | | | | MF office receives your form & documents. |
| & he would collect the form & required | | | | Advantage: |
| documents from you. | | | | - Its a direct channel so no commission |
| Advantage: | | | | whatsoever. |
| - Easy process of investment. | | | | Disadvantages: |
| - Good channel for people who are not net savvy. | | | | - Every time you make an investment you need |
| - If you have a good financial planner they advise | | | | to fill up lengthy investment form. |
| you good schemes. | | | | - It may take 2 days for postal delivery so the |
| Disadvantages: | | | | purchase price remains uncertain. |
| - Fee based system: You need to pay your | | | | Dedicated websites which offers different mutual |
| advisor either an annual fee / visiting fee or | | | | fund schemes at one place |
| commission based fee. | | | | There are two websites that offer this service: |
| - The advise may not be in your interest and he | | | | - - Fundsupermart.co.in |
| may advise you funds where he gets high | | | | This is the newest of all channels in India & |
| commission. (unfortunately this is what happens | | | | so far the most convenient. I know of only these |
| most of the times) | | | | two sites which offer this serviceyou can choose |
| Online through respective Mutual Fund Sites | | | | any one by looking at their Mutual Fund Scheme |
| This is a very good channel & I personally | | | | coverage & other added services you desire. |
| prefer this. But the problem is very few MF | | | | The process of opening an account is very similar |
| offers this facility. But then you can always find | | | | for both of them. |
| good schemes among them. | | | | |
| The process of investing online through MF sites is | | | | 1. You need to fill up an online form. |
| more or less similar for all MFs. | | | | 2. The filled up form is then emailed to you |
| | | | 3. download the form from your email, take a |
| 1. You can either download the form from their | | | | print out, and sign at relevant places |
| sites of fill it online (if they have the facility). | | | | 4. attach PAN Card, Bank Cheque photocopy, |
| 2. Fill up the form & attach your attested | | | | address proof and a photograph along with KYC |
| copy of PAN Card, bank cheque photocopy along | | | | form and courier it to the address provided. |
| with the payment cheque. | | | | Advantage: |
| 3. Fill up the PIN agreement form available on their | | | | - You get advantage of online investment just like |
| website. This is necessary as you would need a | | | | demat account but without paying anything. |
| PIN Number to log in to your MF account. | | | | - There are other value added services which too |
| 4. Courier these filled forms & documents to | | | | comes free of cost |
| respective MF address, or submit it physically to | | | | Disadvantages: |
| their registrars - CAMS/KArvy. | | | | - The cutoff time here is around 2:00 (in |
| 5. In about 2 weeks you would receive the PIN | | | | fundsindia) & 1:20 (in fundsupermart) while if |
| number & wholla you are all set to invest | | | | you go through direct online investment through |
| online. | | | | MF sites it is 3:00. |
| Advantage: | | | | Note: For all kind of Online investment you need |
| - You have all the advantage of Demat account | | | | to have a bank account with online money |
| here. | | | | transfer facilities. |
| - No commission/ fee or hidden costs. | | | | Though this is the best channel so far personally I |
| Disadvantages: | | | | prefer FundsIndia over FundsSuperMart because... |
| - the first investment should be in physical form. | | | | - Cutoff timing for equity funds is 1:20 in case of |
| So you need to invest through your advisor/ or | | | | FundsSuperMart while 2:00 in FundsIndia |
| other physical channels to start with. | | | | - You cannot invest until you are KYC complaint |
| - All Mutual Funds have different websites & | | | | through FundsSuperMart while you can invest |
| different Pin numbers. So if you invest in large | | | | upto Rs 50 thousand through FundsIndia even |
| number of schemes tracking them would be | | | | without being KYC. |
| difficult. Also you would need to remember | | | | - FundsIndia sends you prepaid courier and seems |
| multiple folio numbers and passwords. | | | | to have a better customer care. So you actually |
| List of Fund Houses offering Direct Online | | | | save your courier costs too. |
| investments | | | | Conclusion: Take any channel you feel convenient |
| - HDFC | | | | but you must invest in Mutual Funds to reach |
| - Reliance | | | | your goal of Financial Freedom!!! |
| - Principal | | | | |