2 Ways you can buy mutual funds

2 Ways you can buy mutual funds
  • Share

You may have planned for your goals, and know the monthly investment amount required, the asset class / mutual fund to invest into. Hence, the only thing left to do now to is to buy or invest in mutual funds.

As an investor, you have two options to choose from while buying mutual funds. These are offline and online medium.

Offline mode

This medium consists of third party players. These could either be a mutual fund agent/distributor, banks, financial advisors or financial planning or wealth management boutique firms. Through this channel, you have a one on one approach, you have someone guiding you through the buying process. Along with this you also have after sale services or client servicing available to you. Any issues or queries faced by you can be clarified by asking them personally. However, these services come at a cost, which includes the commissions paid to such individual or entities, which are deducted from the investments you’ve made.

Online mode

The mutual fund industry has eased buying and selling of mutual funds, by introducing a sale of funds via online portals, brokers or directly through the fund house. To start investing this way, your Know Your Customer (KYC) should have been completed beforehand. Most online portals provide you with advice related to the funds to invest in and also offer information needed for a comprehensive performance comparison. When funds are bought directly through the fund house or agents, you have to pay a commission (which is included in Net Asset Value, NAV), whereas when done through a website of the fund house no commissions or distribution charges are applicable.

Disclaimer: Mutual Fund investments are subject to market risks, read all scheme related documents carefully.

Plan Now