Mutual Funds

Mutual Fund – An introduction

In the capital market, one kind of financial intermediary is a mutual fund. It gathers collective contributions from individual and corporate investors in the form of units, and on their behalf, it manages a portfolio of diverse schemes that invest the combined funds in equities and debt instruments.

Mutual funds are the best option for people who want to enhance their wealth but don’t have a lot of money to invest or the time or expertise to undertake market research.

One fund share entitles the holder to a piece of ownership in each and every asset the mutual fund holds because they invest in a wide variety of investment possibilities.

For their expert assistance, the fund house is compensated with a small charge that is subtracted from the investment. Specific limitations on the fees that mutual funds may charge have been established by the Securities and Exchange Board of India (SEBI).

How to invest in mutual funds

How to invest in mutual funds – What are the options available

Do you want to know how to invest in mutual funds then you have come to the right place. The following steps are required to invest in mutual funds as per the financial experts of FIA Global – a leading provider of business correspondent services.

One may invest in mutual funds at the authorized Investor Service Centres (ISC) of mutual funds or Registrar & Transfer Agents of the applicable mutual funds by submitting a properly completed application form together with a cheque or demand draught. – OR
The appropriate mutual fund websites provide the possibility to invest online as well. – OR
Additionally, one may decide to invest directly, i.e., without involving or routing the investment through any distributor, or with the help of / through a financial intermediary, i.e., a Mutual Fund Distributor registered with the Association of Mutual Fund of India. (AMFI).

A mutual fund distributor can be either an individual or a non-individual institution, like a bank, brokerage house, or supplier of an internet distribution channel.

KYC – Know Your Customer – is a prerequisite before investing in mutual fund

One must first complete the KYC – (Know Your Customer) procedure by filling out the required KYC form before participating in a mutual fund scheme, whether through an online platform or a more traditional paper-based one. The KYC form can be obtained from the office of Registrars and Transfer Agents (RTAs) or from Asset Management Companies (AMCs)

The procedure for identifying customers that is part of creating an account with any financial institution is known as “Know Your Customer” (KYC). Through pertinent supporting papers for identification of the customer or investor, the following documents are required to prove an investor’s identity and residence

Passport, or
Aadhaar, or
Pan Card

You can provide the AMC or RTA with the above documents to process, verify, and update your KYC status. One of the steps in the KYC verification process is In-Person Verification, or IPV.

The customer or investor can visit the office of the KYC Registration Agency (KRAs), AMC, or RTA to do in-person verification. The investor can also have the IPV performed through a mutual fund distributor. Investors should be aware that many AMCs provide the option of online KYC, which entails uploading the necessary paperwork and conducting their IPV through video chat.

Mutual Funds

How to invest in mutual funds

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