Direct Mutual Funds

Asset Management Company (AMC) is where direct mutual funds are bought from. It is crucial to know about what are direct mutual fund plans before investing the money. So, in the case of direct mutual fund investments, there is no role of brokers, agents, and other intermediaries. Furthermore, investors do not need to pay distribution fees or commission. If you are dealing directly with the company, you will not levy any charges for the transaction even when you make lump sum investments. 

What is the process for making investments in the direct mutual fund?

Investing in direct mutual fund plans is not easy, for that you must know how to invest in a direct mutual fund. Hence, you can invest in the direct mutual fund via various applications available online, as well as through offline subscriptions also. 

For online subscription:

  1. Firstly, visit the online app of mutual fund investments.
  2. Next to it, click on the INVESTMENT tab and select MUTUAL FUND.
  3. Then, enter your name and mobile number in the form, click on PROCEED.
  4. Now, you will be directed to the mutual funds' dashboard, where you can choose the schemes based on category, performance rating, and investment duration. You could also sort the schemes by one, three, and five year's returns. 
  5. Furthermore, click on the scheme you want to avail of, and you will get all the details regarding it. 
  6. After choosing a scheme to enter the amount, you want to invest and click the ADD TO CART and click on PROCEED. 
  7. Next, enter your date of birth and PAN number and click on SUBMIT.
  8. Now, upload some documents required for completing KYC and click on SUBMIT. Then, you have to record a video of yourself by holding the PAN card. 
  9. Then, fill your details and click on SUBMIT.
  10. Next to it, enter your bank details for investment, including account number, IFSC code, etc. 

At last, after submitting the details, you have to verify them. For this, you have to fill OTP for authentication received through email id or phone number registered in the office. After verification by using the opted payment method, you have to finish the transaction. Then you will receive a transaction reference number. Hence, you will get confirmation on the same mobile number and email id after the completion of the payment.

For offline subscription: 

The investors who wanted to make an offline subscription for direct mutual fund investments should - Visit the office of Mutual Fund Company. They can also invest through registrars such as CAMS or Karvy MFS.

For this,

  1. Firstly, you have to choose the scheme for investment and later on visit the nearby branch.
  2. Then, you have to pay the charges for the subscription of the direct plan investment. 

Hence, this information is lucrative for you to know about how to invest in a direct mutual fund. 

Documents Required for Investing in Direct mutual fund plans are given below:

  • A self-attested copy of identity proof like passport, Aadhaar card, voter ID, etc. along with KYC form
  • Proof of address
  • PAN card
  • Passport size photographs

Platforms to make Investment in Direct Mutual Fund Plans: 

The following platforms can be used to invest in direct mutual fund plans like Companies (AMCs), investment advisors, mutual fund utility, official websites of the Asset Management, and mutual fund registrars.