It is important to know certain things about how to buy mutual funds. To invest in a mutual fund scheme, one must have PAN, bank account and KYC. It is mandatory that the bank account is in the name of the investor with a Magnetic Ink Character Recognition (MICR) and Indian Financial System Code (IFSC) details.
There are many mutual fund schemes in the market in which investors can invest in. One can easily invest through offline or online modes or in direct and regular plans as well.
It was during January 2013, that all MF houses applied a new plan under their existing schemes. This plan is mainly targeted at those who buy mutual funds through the distributors. Through this means, an investor earns a slightly higher return from the fund, with the same portfolio. A good thing about the direct plan is budget friendly as is it does not charge any commission.
One can find intermediaries in the market quite easily. A number of intermediaries are working on mutual funds. These intermediaries are distribution companies, banks having worldwide presence, stockbrokers etc. Every intermediary is to be legally registered and in the books of Association of Mutual Fund in India (AMFI). The work of the intermediaries is to make the investor fill the application form; submit the form and other documents to the MF office.
Another means of buying a mutual fund is through Independent Financial Advisors (IFA), who work as an intermediary to facilitate the entire process of the investment. The investors get help from them in filling up the application form and submit them to the AMC.
Apart from this, one can directly invest in the AMC through online portals, banks, Demat and online trading account and electronic money transfer.
One can acquire more knowledge on how to buy mutual funds through various companies like “Quantum” that are setting new goals in the market.