A mutual fund is an investment instrument where the money of numerous investors is pooled together and invested in equities, bonds, or government securities. If you’re considering starting a mutual fund investment, you have a wide variety of options to choose from. You can invest in mutual funds in India through two primary methods—in person or online. Let’s look at the entire process of opening a mutual fund.

Online Process for mutual funds investments

Investing in mutual funds online may be easy with a few clicks. You can begin to invest with an asset management company (AMC) via their online platform. Here’s how you can invest in mutual funds through an online process:

• Begin by choosing a good and trustworthy AMC via careful research, which has a range of mutual fund schemes that match your financial plans and requirements.
• Next, register or sign up by providing basic information such as name, email ID, and phone number.
• One critical process is to carry out the KYC (Know Your Customer). The necessary documents you have to provide are valid proof of identity, proof of address, and a photo for verification of identity.
• Next, link your savings account for transactions by providing the bank details and uploading a bank statement or a cancelled cheque.
• You may now begin investing in mutual funds by comparing and browsing through fund options. The online portal will ask you to enter information about the chosen scheme.
• The screen will show a confirmation and send an email to the registered email address once the transaction is complete.

Offline Process for mutual funds investments

Offline is the traditional mode of making investments in mutual funds. In this scenario, investors physically submit the form, which is then digitised and processed. The process through offline process includes:

• Find the closest branch of the mutual fund house of your choice, fill in the application form, submit a request to open an account, and complete the KYC form.
• The second step is to fill out the application form for the mutual fund schemes you have selected. You can download the application form from the selected company or get it from the Registrar and Transfer Agent (RTA).
• Submit the form with checks or a demand draft to make your first investment. You will receive a time-stamped acknowledgement at the time of submission.
• The confirmation message will be sent to your mobile number on the next working day, and you will receive the account statement with the transaction via your email address.

Investing in mutual funds is an excellent way to grow wealth and diversify the investment portfolio. Its appeal lies in its multiple investment options, simple mutual fund calculation, affordability, and ease of redemption. Make an informed investment decision by understanding the process, whether online or offline.