There are two broad ways you can invest in mutual funds – directly or through an independent financial advisor/mutual fund distributor/ broker. You can also choose the medium to invest – online or offline (and both of these can be done through the distributor’s office or directly with the mutual fund company). In all cases, you will need to have a Permanent Account Number (PAN) and comply with the ‘Know Your Customer’ or KYC requirements.

Once the KYC requirements are completed, you can consider any of the following popular methods to invest:

Note: While investing, you may come across ‘Regular Plans’ and ‘Direct Plans’. Simply put, when you buy through an intermediary like an advisor or a distributor, you get units allotted under the Regular Plan. When you purchase directly without an intermediary being involved, you will get units under the ‘Direct plan’. Although the portfolio and corpus of the regular plan and direct plan are the exact same, the NAVs are different due to differing fund expense management ratios. When you invest directly, and not through an intermediary, you are not charged the commission payable to intermediaries from the fund house; to this extent, the NAV of the direct plan is higher than that of the regular plan.

What sort of documentation do I need to get started?

For investing in mutual funds, you need to complete a one-time ‘Know Your Customer’ (KYC) registration process by submitting the following documents:

Getting started: Other considerations

When you make your investment, you should also be clear about factors such as the following:

Leave a Reply

Your email address will not be published. Required fields are marked *