Demat for mutual funds


#1

Is demat needed for investing in mutual funds? How to invest online?


#2

Hi,

All the certificates of your investment portfolio is held in the demat account such as bonds, mutual funds, government securities and shares. Although it is a great tool in trading and considered wise to have a demat account if you plan to invest in mutual funds, it depends on the requirement of the investor.

Step-By-Step Guide To Buying Mutual Funds Online
Once you have decided which fund you want, you can follow the steps given below to start a mutual fund:

  1. Go to the website of the Asset Management Company (AMC) whose fund you have chosen.
  2. Click on ‘New Investor’ or other similar relevant links that will take you to the profile creation page.
  3. Fill your PAN, personal details, contact details, bank details and nomination details on the site’s application form.
  4. KYC verification is mandatory. It is also compulsory to provide FATCA compliance if you are a US citizen.
  5. Create a username and password.
  6. Choose the fund you want to invest in and make an online money transfer to the fund to create your own portfolio.
    You can also register yourself with online mutual fund portals such as FundsIndia and Fundsupermart, from where you can manage even multiple fund portfolios. They are an online brokerage agency and will charge the AMC with a small commission on transactions. Alternatively, you could open a demat account with any security brokerage firm such as Sharekhan or ICICI Direct, which will allow you to invest in funds.

Looking for Mutual Funds? Click here.

Cheers,
Team BB