Online Investment in Mutual Funds

Most of the mutual fund houses, brokerage firms,sites provides data of top performing mutual fund
banks are having facility of making onlineschemes, rating criteria is different and hence one
investments in Mutual Fund schemes in India.cannot relay on this data while taking investment
Benefits of online investments:decision.
· No need to visit the office of the broker orThe points should be taken into consideration while
distributor.investing in Mutual Fund scheme.
· No need to filling Application Forms manually.Time horizon: It is most important factor. If you
· Once the account (Folio No.) is created makingare long term investor there is chance of getting
additional investment is very easy and timebetter returns. In this case you can exit at any
saving.time when you have made sizable profit.
· By applying for E-PIN from the company, easyRisk taking aptitude: It is also most important
to manage funds.factor, if you are afraid for losses in short term
· Redemption or Switch between one scheme toyou should avoid investing in equity schemes. In
another is just click away.such case you should go for hybrid schemes or
· Account Statement 24/7pure debt schemes. Investing in pure debt
· Investor can track the investment 24/7.scheme is more profitable than investing in Banks
· If you wish to make maximum profit, you& Post.
should invest regularly and if you can manage toDiversification: It is better to invest in diversified
invest on every occasion of decline in SENSEXschemes for new investors. For customized
you are about to make maximum profit. To doinvestor, who is capable of tracking his
this best option of making investment is Onlineinvestment and market conditions, sectoral
Investment.schemes is best option, in sectoral schemes
Disadvantages of Online Investment:timely exist is important.
No personalize advice; investor has to take hisDiversification by schemes: It is always better to
decision at his own.invest in different schemes of top mutual fund
Very few offers personalize Portfolio tracker withhouses that to put all money in one diversified
facility to add all Mutual Fund investment, includingscheme.
made earlier through different distributor in samePast performance: It is the most essential criteria
portfolio.and hence one should view the historical
To overcome the above disadvantages it isperformance of the scheme. Considering returns
better to invest through a broker who providesfor the period of 1 Year, 3 Year, 5 Year and
value added services like flexible portfolio trackersince inception will help you to take your decision.
with facility of including all investment record in atThe scheme which outperform in all types of
one place. It is also better to invest through areturns category is safer choice for investment.
broker who provides advisory services, some ofInvest regularly and if you invest at the time of
them are providing it free of cost and some ofevery fall in Market you are going to make huge
them are charging for these services. It will totallyprofit over the period of time, it is my own
depend on you to choose paid or free service. Ifexperience. My strategy to invest at every fall in
you are customize with the mutual fund investingSENSEX by 2%. In last many years I have
it is wise to choose free advisory service. Manyadopted this policy successfully.