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Home / Opinion / Online-views /  Did You Know | 3 things to help you invest in MFs online

Asset management companies (AMCs) are usually on the ball with adapting to technological efficiency. Now it’s your turn to become an efficient investor by using technology. Online investment in mutual funds (MFs) is one such advantage that you shouldn’t miss out. Here are three pointers that will help you invest directly through a fund’s portal.

Do you need to be an existing investor?

A majority of online investment portals from MFs require you to be an existing folio holder or in other words an existing investor in one of their schemes. If you are one, you can typically fill in some details online and start using the platform. Some like HDFC AMC need you to apply physically and generate an online PIN (personal identification number) before you can start transacting.

Do you still need your adviser?

Many of you may be reluctant to get on this platform thinking that it will negate the work of your investment adviser, who is steering you to the right type of funds. However, this is not the case. Even on the online platform, just like in the case of a physical platform, you can choose to invest directly or through a broker. If you are an existing folio holder, then the fund house will automatically pick up the broker/distributor details from your folio and your adviser will get the credit and the trail commission. If you are starting a new investment, even then there will be the option of adding the distributor code for due credit.

Check your bank account details

When you start transacting online, any existing bank account details will get mapped to your online account. This is important to track if you want to switch from an existing online securities account you may be using for making those transactions.Typically, an online securities account is linked to a bank account. So if you start direct online transactions with the MF using the folio details for your securities account, it will link the same bank details as are valid for your online broking account. If you want to change your bank account details, then it’s better to fill in a fresh form for a new folio.

Keep in mind that investing online through a fund’s own website allows you to approach the fund directly and not via a broker, so you are in better control. On the other hand, if you use an online securities or broking platform to invest in funds, you have a wider choice at one place and most of these sites even offer services such as showing you a consolidated portfolio.

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