How do I Start investing in Mutual Funds Online?

The Internet of things has touched every corner of our lives. In food & beverage it has given us access to a variety of options by sitting in the comfort of our homes, in telemedicine it has encouraged doctors to perform surgeries and consult patients remotely, in communication it has made our lives way easier by almost putting the entire world in our hands, in banking & finance, it has made our lives a lot easier by doing away with brick & motor setup and replacing it with the click of a button. While IOT has touched and changed almost everything in our daily lives, investment also has leveraged its convenience and simplicity. What used to take a lot of time in filling up forms and attaching id proofs has now been replaced with a few easier steps & clicks.  

One can find a variety of options when it comes to investing in mutual funds online. You can do it online via your banks, or log on to the mutual fund website, you can do it via Demat account via RIA’s (Registered Investment Advisor), etc. There are plenty of options available, but what you should be careful about is the plan you are selecting while investing online is direct or regular.

Regular Plan

The commission to the distributor is added in the Regular Plan TER or the total expense ratio. Thus, the NAV of regular plan is also slightly higher than direct plan and the units you get are slightly lesser than what you could have got in a direct plan. Even when you invest via a Bank or via your DEMAT account, you are investing in a regular plan attracting a higher expense ratio compared to a direct plan.    

Direct Plan

When you log on to an AMC’s website and you choose to invest in mutual funds online directly or through an RIA , you are investing in a direct plan. When you choose to invest in a direct plan online, the TER or the total expense ratio is slightly lesser as compared to the regular plan as it does not include any commission charges. You end up getting slightly more units as compared to a Regular plan.

However, whichever mutual fund you choose to invest online, always remember to do proper research before investing.

Disclaimer: The views expressed here in this Article / Video are for general information and reading purpose only and do not constitute any guidelines and recommendations on any course of action to be followed by the reader. Quantum AMC / Quantum Mutual Fund is not guaranteeing / offering / communicating any indicative yield on investments made in the scheme(s). The views are not meant to serve as a professional guide / investment advice / intended to be an offer or solicitation for the purchase or sale of any financial product or instrument or mutual fund units for the reader. The Article / Video has been prepared on the basis of publicly available information, internally developed data and other sources believed to be reliable. Whilst no action has been solicited based upon the information provided herein, due care has been taken to ensure that the facts are accurate and views given are fair and reasonable as on date. Readers of the Article / Video should rely on information/data arising out of their own investigations and advised to seek independent professional advice and arrive at an informed decision before making any investments. None of the Quantum Advisors, Quantum AMC, Quantum Trustee or Quantum Mutual Fund, their Affiliates or Representative shall be liable for any direct, indirect, special, incidental, consequential, punitive or exemplary losses or damages including lost profits arising in any way on account of any action taken basis the data / information / views provided in the Article / video.

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