Ways to Invest in Mutual Funds

If you have been working for a few years in India, chances are quite high that you have heard of investing in mutual funds many times. In that past, most of these kinds of investments were driven through agents. It’s a lot different now as you would get to know every bit of information about these investments online and that surely makes your decision easier.  If you have been thinking about making an investment, here are a few simple methods:

1.       Invest via an AMC: You can invest into a mutual fund by approaching the mutual fund companies directly. Each of the companies provide online facilities to invest from the second investment onwards and thus are able to complete your transaction easily. Sounds good? Well almost. In this process, you have to fill the first form at the office of the AMC, so apart from the first investment; the rest can be done on the internet. The tough end of this deal is if you want to participate in 3-4 different funds, that means you have go to each of the offices and have the first form filled and submitted. So, this investment makes sense only when you are going to invest a big amount of money and over a long period of time too. Plus, you do not really need a demat account for this.

2.       Use your Demat account: The most common and recommended methods would be to use your demat account. You can look through all the different mutual funds and easily make your investments. All it would take is a few clicks on your mouse, to choose to invest in the fund of your choice. The only catch would be the charges you have to pay the demat medium you use. The biggest advantage though is that you can have access to all your transactions and details from one place alone. How easy is that?

3.       Use the fund directly: Certain funds allow you to purchase mutual funds online, that means not having to go through a broker or source at all. You would have all the possible information you need about the mutual fund along with the performance of the fund over the years. It is a very easy solution no doubt and is a sure option on the long term. You would have lesser commissions to pay and thus is a great idea if you are planning to invest on the long term.