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How To Invest In Direct Plans of Mutual Funds

<br>Direct mutual fund plans are the first choice of do-it-yourself investors. The reason is simple, direct investment in mutual funds eliminates the need for a dealer. So you don't just save on transaction costs, if any, direct mutual fund plans have lower fees. While the difference in costs may seem insignificant at first, but over time, thanks to the magic of compounding, the difference in terms of value equals thousands of rupees.<br>

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How To Invest In Direct Plans of Mutual Funds

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  1. How To Invest In Direct Plans of Mutual Funds

  2. Direct mutual fund plans are the first choice of do-it-yourself investors. The reason is simple, direct investment in mutual funds eliminates the need for a dealer. So you don't just save on transaction costs, if any, direct mutual fund plans have lower fees. While the difference in costs may seem insignificant at first, but over time, thanks to the magic of compounding, the difference in terms of value equals thousands of rupees.

  3. To learn more about direct mutual fund plans and the benefits of direct mutual funds, please read this guide first: Direct Mutual Fund Plans: Everything You Need to Know

  4. In this article we delve into how to buy direct mutual funds or rather how to invest in direct mutual fund plans. Many of you may be wondering where to buy direct mutual funds, as the direct plans option is not available from your local mutual fund dealer or broker. Therefore, you should invest in direct mutual funds online through an investment advisor or the website of the mutual fund or MF Utilities.

  5. If you want to invest offline, you may need to visit the office of the mutual fund company or its registrar, such as CAMS or Karvy MFS of Manage MF Online. So if you want to invest in HDFC Mutual Fund or SBI Mutual Fund or Reliance Mutual Fund schemes or any of the 40 fund houses, you will need to visit their branch to submit the application form and payment. Otherwise, you will need to visit the fund's registrar's office. • Therefore, along with your quest to select the best direct mutual funds, it will be of some benefit to check out the different options for direct plan investments. Take a look at the different direct mutual fund platforms. Go for one that is backed by solid research and services.

  6. How to Invest In Direct Mutual Funds Online? • You can invest directly in mutual funds online for direct mutual fund through multiple options. But before you start, please have your PAN, Aadhaar, your bank account details (account number, IFSC code, MICR, etc.) and online banking transaction login details handy. • The KYC is linked to your PAN number, therefore when you invest through different platforms they first check if your KYC is complete using your PAN data. • Once you are done with the KYC paperwork, you can invest through any of the routes below. Choose the one you consider most convenient.

  7. Invest in direct plans through the mutual fund house website • Once you've decided which fund to invest in, you can invest in mutual fund schemes directly through the Asset Management Company's online portal. • For example, if you want to invest in Fund A, you can go to your fund house's website and buy the fund's units online.

  8. Register account with the mutual fund company • Most mutual funds will require you to create an account first. The personal information required is similar to that required in the mutual fund application form. Some fund houses may ask you for a basic record first like buy sip onlineand then a detailed record when completing the transaction. The process would vary from one fund house to another. • Choose the desired scheme and investment details • When you get to the investment section of the online from, be sure to select the Plan Type as "Direct". Also double check the schema option. With the direct plan, you will get the option of growth or dividend. Choose the option that fits your financial goals.

  9. Verify and complete the transaction • After submitting the above, you will be asked to verify the details. Many overlook this and move on. It is better not to rush and take the time to read the form carefully. Many times there are typographical errors in the bank account number. Changing it later is a tedious task. Therefore, try to avoid such mistakes from the beginning. • Once successfully verified, you can complete the transaction on the next page using the payment method chosen above. A transaction from mutual Fund Service Centres reference number will be provided to you. Make a note of this as it can be helpful if an error occurs in the transaction process. Once the payment has been completed successfully, you will receive a confirmation on your email, mobile or both.

  10. Buy direct mutual funds through public mutual fund services • The mutual fund transaction portal, MFU (Mutual Fund Utilities) is a single window for you to transact in mutual fund schemes. • Mutual Fund Utilities is a shared platform of different fund houses. You need to create an account first, before you transact, and you can transact in mutual funds from almost all AMCs. Using a common transaction form (CTF) or through the online portal, you can invest in multiple funds from different fund houses.

  11. Also, there is no additional charge for mutual fund investments made through this portal. The cost of the platform is shared by the participating fund houses. • Most of the major fund or direct mutual fund houses are part of this platform, therefore, it eradicates the disadvantages of the previous routes where the mutual fund investment universe is limited. • To invest in direct mutual funds through the MFU platform, you will first need to create a CAN (Common Account Number). CAN is a unique reference number issued by MFU. The CAN will map all of your existing mutual fund folios at the fund houses (participating in MFU), thus giving you a consolidated view of all your mutual fund investments.

  12. This is similar to a mutual fund folio, the only difference, while the folio is limited to a fund house, the CAN is applicable to all fund houses of only one type of participation. • You can create an e-CAN online. Follow the simple process outlined here: 3 Steps to Build Your e-CAN Mutual Fund • Once you have created your CAN, you can register for online access through its portal: https://www.mfuonline.com/. You will need to create a user ID and set a password for the account. • Once you are logged in, you can start transacting on the account by clicking CAN Transaction as highlighted below. Choose Buy for a global investment or SIP if you want to get started and SIP. If you are investing in regular plans and want to switch to direct plans, you can use the Switch option.

  13. About Us • CAMS is a technology driven financial infrastructure and services provider to Mutual Funds and other financial institutions for over two decades.  As the market leading Registrar and Transfer Agency to the Indian Mutual Fund industry, CAMS serves ~ 70%* of the average assets under management - as of December 2020. We also provide technology enabled service solutions to Alternative Investment Funds and Insurance Companies. Besides serving as a B2B service partner, CAMS also serves customers through a variety of touch points such as pan-India network of service centres, white label call centre, online, mobile app and chatbot. • Website - https://www.camsonline.com/

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