Benefits of Buying in Mutual Funds Online
In most cases it is highly beneficial to buy a mutual fund online than depend on an advisor to assist you with the same. The equity mutual funds charge you an entry load which is a percentage of the amount that you wish to invest in the mutual fund. This fee is then passed on to the agents in the form of a commission.
The Mutual Fund advisor or the broker gives a service to the mutual fund house. He educates the investor and sells the mutual fund product of the company to the customers. In this way he is marketing the product of the mutual fund company and giving the company customers. For the services offered by the broker will charge a fee. This is paid to him by the mutual fund company and to pay the broker the brokerage charges the customers pay an entry load fee.
How to purchase mutual funds without a broker in India?
Earlier whether you brought the mutual fund online or through a Mutual Fund advisor you had to pay the entry load. However now as per the new rule if you buy the mutual fund directly then you are saved from paying any entry load. This is the cheapest way to invest in mutual funds. The online investments tool save you from the entry load fees if it is not done through a broker.
If the market is rising and one is making lots of money then this entry load could go unnoticed. But imagine a falling market where on top of the losses you will also have to pay extra an additional fee.
Buying Mutual Funds Online without Advisor
Most of the mutual fund houses let you buy the mutual funds online through their website. It saves you a lot of paperwork and all the formalities are done online.
You can then start to invest in the mutual fund online too.
The move has definitely reduced the cost and the burden on the investors. However if you have an advisor who is actually helping you manage your portfolio and gives sound advice then you may still choose to do the investments through him. This is the disadvantages of direct mutual funds. The entry load that you pay extra may not pinch you as much as making a wrong investment and losing all your money. However, if you do not have a good advisor, then understanding the product yourself and investing in it online is the best method.
What Are The Benefits Of Buying Mutual Funds Online?
There are many benefits when you choose to invest in the mutual fund online.
- No paperwork involved – The most important thing about investing in mutual funds online is that you are free of any paperwork. You now do not have to fill up long and tedious forms, make a cheque and also keep filling the know your customer form. Once your KYC is done you can start to make investments online without having to do the same each time.
- Check your account balance at any time – Now you do not have to keep asking your agent about how your fund is performing. All that you need to do is to log in and check your account details to know how your fund is performing. Also in case you want to make any last minute investments like to save on tax you can do so immediately without having to rely on and wait for someone.
- It is now easy to analyze the fund performance – You are able to analyze the fund performance and you are free to take a decision on whether to hold on to those funds or switch to some other fund. All this can now be done on online mutual fund investment without having to go anywhere. You can invest in many mutual funds at the same time and track them all in one place
- There are many companies that will also assign you a relationship manager Mutual Fund advisor who will track the account for you. So in case you do not have the time or the knowledge to keep tab of how your fund is performing you can avail this service. You will be given regular updates on your fund performance and also when to switch or redeem your fund.
Online mutual fund investment gives you all the comfort of investing in this instrument. You are able to take your own decision and make your own final plan. Investing in the best mutual funds can be tricky. So look for mutual funds from well-known companies, check their past record and opt for those that are structured and help to build wealth.
Investing Into Mutual Fund through Online Portal – Features Offered To You
The advancement in technology has made investing simple and easy. Investing in mutual funds online is convenient, quick and effective and it also lets you manage all your investments online. They also offer you a host of facilities and services.
Features of the online mutual fund investment portal:
- Easy boarding of the customers – All that you will have to do is to fill up the KYC form and get your email id registered. This is the step to generate your username and your password. After this you can start to invest in the mutual funds of your choice
- You can now plan all the mutual fund investments which will help you to maximize your investments. This will make you financially secure to meet your goals
- It just takes a few quick clicks to complete all your finical transactions. You could choose the scheme that you wish to invest in and also switch from one scheme to another. Redeeming the mutual fund investment is also a click away
- Compare the funds and see how their net asset value keeps changing. This will let you keep a tab about which funds are performing better and then you can take an informed decision whether to redeem, continue or switch the mutual fund
- There is always assistance to help you in case you face any difficulty. You can get in touch with the online help desk that will guide you through any queries that you may have about your online mutual fund investment.
- Create a watch list and get alerts- If you are the one who manages his account proactively and has a good understanding of the market then you could also have a watch list to track your account. You will also be given alerts and notifications so that you are always kept in the loop about how your fund is performing.
Why Should Mutual Funds Be A Part Of Your Portfolio?
Mutual Fund is today a popular investment product. It pools the money of the investors and invests the money into a variety of asset classes like bonds, stocks and other investment instruments. The mutual fund investment is managed by a fund manager and they are experts to take care of your money. The fund managers know where to invest your money, which is the asset classes that are performing and where to take out your money from.
The objective of investing in mutual fund schemes could either be to save tax, offer convenience or generate high returns on your investments. The benefits of investing in mutual funds Online are:
- They offer diversification and this is one of the major benefits that you enjoy when you invest in mutual funds. Even with a small amount of money, it is possible for you to diversify your portfolio. You could choose to invest in low-risk instruments or high-risk ones, the choice is all yours. When you invest in a diversified portfolio the chances of higher returns is huge and the risks are minimized.
- Mutual fund investments are liquid and thus you can invest in them and redeem them very quickly. The investors can get their money back immediately in case they opt to redeem their mutual fund investments. Some investments however attract an exit load if you plan to redeem them
- The flexibility with investing in mutual funds is that the lock-in period does not exist in many of the schemes. This means that you are completely at will to redeem your money if you wish to at any time.
- The returns are high in mutual fund investments. Yes, they have risk factor attached to it but still, the investments are much better than the amount of risk that you need to take. You could also choose a mutual fund based on whether you are a risk taker or a risk-averse investor.
The benefits of investing in Mutual funds Online cannot be avoided because you can invest in your any plan without having to go anywhere.
How to invest directly in mutual funds? Just select the mutual fund that you wish to invest into, visit the company website and buy the mutual fund scheme online.