How to invest in MFs

Through a mutual fund distributor

AMFI registered Mutual fund distributors provide financial advice and help investors with mutual fund transactions. Distributors are paid commissions by the fund house; therefore, they do not charge any fee from investors. The cost of mutual fund units purchased through these distributors (regular plans) is higher than units directly purchased from AMCs. For new investors, it will be wise to invest through a distributor.

Directly with the AMC

You can invest directly with the AMC by visiting their office or through their online portal. If you are a new investor then you need to submit your KYC documents either at the AMC office or online. You can buy direct plans, expense ratio of which is less than regular plans from the AMC.

Through Registered Investment Advisors (RIA)

You can invest through SEBI registered RIA. You can invest in direct plans through RIA and the RIA may charge you a fee.

Through Registrars and Transfer Agents (RTAs)

RTAs process mutual fund transactions on behalf of the fund houses. If you are transacting through RTAs, then you should know which RTA services the AMC whose scheme you intend to buy. You can invest both in direct and regular plans through the RTAs.

Online

Those who are thinking how to invest in mutual funds online have several options. To invest through online portals your KYC has to be registered. Some of the portals even help you in getting your KYC registered. All mutual fund houses also provide online investing option. However, while investing online you should carefully check whether you are investing in regular or direct plans. You can also check with your mutual fund distributor if he or she is providing an online investing facility through their own website.

Through stock broker

Stock brokers who provide online trading and demat services, also offer online investment in mutual funds. Stock brokers who offer this service are also AMFI-registered MF distributors, and therefore, they offer regular plans.

Through your bank, Most banks offer wealth management services through which you can invest in mutual funds. Since banks are also mutual fund distributors, you will be investing in regular plans.