Online sale-purchase of mutual funds through portals

Now you can deal with mutual fund investments by your computer or mobile from your home or work place. These all portals serve those investors who want to invest directly without involving any MF agents. Let's learn here that how can a person make online transactions in mutual funds.

With the removal of entry load since August 2009, online mutual fund portal has emerged as a medium to buy/ sell mutual funds online. Many online MF portals are acting as a shop for funds. Let's read that what they offer.

How to make sale/ purchase of funds through online mutual fund portals

To make online mutual fund transactions, you need to register yourself with concerned website and follow the following steps to sell/ purchase funds online.

1. Open an account by filling an application form providing your personal details like name, date of birth, address, etc. You also have to submit a copy of PAN (Permanent Account Number) card.

2. Then you have to register your bank descriptions with your portal. You may also have to do ECS, if required.

3. After the completion of form filing, take a print out of application form and attach copies of identity proof, address proof, PAN card and other important documents.

4. Send it to the portal or ask them to send an executive for its collection.

Services provided by online mutual fund portals

1. One stop shop (sale/ purchase under same roof):
The main feature of online mutual fund portal is that it provides facility to sell, buy or manage funds at a same place under single roof. You can purchase funds of different fund houses on a single website. Thus you need not to open particular sites of different funds or to step into their offices. For example, has funds of 33 MF fund houses whereas has facility of 36 online MF fund houses. Such portals provide you an opportunity to select any mutual fund plan out of 2000 plans available in the market. The list of covered portals by all fund houses is increasing day by day.

2. Consolidated statement:
These portals also provide a facility to manage a consolidated statement of all purchased funds. Although you get a statement on investing in a particular fund but a consolidated statement of all funds presents a better picture. Also you need not to remember huge number of passwords and IDs. All information can be gathered at a single login with a single password and ID.

3. Portfolio Analysis:
These portals provide you facility to view and check all mutual funds portfolio online. You can also analyze your portfolio of all mutual fund holdings purchased through portal with different sectors and companies.

4. Bank Accounts:
These portals don't restrict you to a particular bank account to just a particular bank account for opening account to manage mutual fund transactions. Rather you can register multiple bank accounts on a single portal. Almost all banks can be registered for this purpose.

5. Investment options:
There are various investment options which can be used here like Systematic Investment Plan (SIP), Systematic Transfer Plan (STP), transfer from one mutual fund to another, Value Investment Plan, Flexi SIP, etc.

6. Paper Folio Migration:
You can also migrate your transactions made by other sources like investment made through agent can be transferred to online portals. You just have to write a letter to your portals providing the fund details and a request letter for transfer.

7. No need of Demat Account:
Since these online portals do not have any platform for stock broking, thus Demat Account is not required while registering here. Thus, security transactions are saved which is otherwise have to be paid if mutual fund (equity linked) are sold or purchased via Demat account. Like paper or physical mutual funds, you need to pay STT only once in portals at the time of sale of funds.

8. Information on mobile phones:
We can't ignore the importance of mobile phones in today's' era. Thus, mutual fund houses also provide the facility of mutual fund portals on mobile. It includes sending regular SMS alerts, MF investment exchange, information of Net Asset Value in relation to registered plans, etc.

Related Articles

Mutual fund investment strategies:Best way of investment in funds

People are wiling to investment in mutual funds to earn higher returns but they commit some mistakes due to which they suffer losses instead of profits. There are certain mutual funds investing strategies which must be considered by an investor and avoid certain mistakes while making investment.

Best open ended mutual fund schemes and options in 2013 in India

Are you looking to invest in mutual funds? Here is a detailed list of all the best open ended mutual fund schemes in India, running in the financial year 2013-2014. Read more to learn about the details of these Indian mutual funds open ended schemes and options.

How to invest in children mutual funds

Are you planning to invest on the name of your minor son or minor daughter? Then the question “What should I do if I am investing on the name of my minor child” must have arisen in your mind. Have a glance at rules and procedure of investment in mutual funds on the name of child less than 18 years of age.

More articles: Mutual Fund Investments Online Trading


No responses found. Be the first to comment...

  • Do not include your name, "with regards" etc in the comment. Write detailed comment, relevant to the topic.
  • No HTML formatting and links to other web sites are allowed.
  • This is a strictly moderated site. Absolutely no spam allowed.
  • Name: