How to Invest in Direct Mutual Funds?

Introduced in the year 2013 by the SEBI, Direct Mutual funds have gained popularity since then. Thus, if you have decided to invest in a direct mutual fund then it is indeed a great idea!

One of the most beneficial factors about the direct fund is that it ensures that the amount which you have to pay to the middlemen is saved. And, you can use that money in other productive work. Direct mutual funds involved no middlemen thus no commission as well.

Let us now address the elephant in the room, how to invest in a direct mutual fund. The process to invest in a direct mutual fund-

There are two modes to invest in a direct mutual fund investment, the Online and Offline mode. Now, once you have decided that you want to invest in the direct mutual fund the next step is to select the mutual fund in which you want to invest in and it also suits your investment needs at the same time.

It is very important to remember that the amount you want to invest in the scheme is based on your investment goals. You can either choose to go with SIP or lump sum deposits as well.

The Offline Mode-

Several investors feel comfortable going with the traditional route and investing in direct mutual funds through offline mode. The steps involved in the same are mentioned as follows-

 

1)    The very first step is to visit your nearest AMC office whose fund you have selected to invest in. Or, you can also choose to go to the local offices of RTAs like Cams and Karvy as they have mostly all the mutual fund houses registered with them.

2)    Once you are at the AMC or local office offices of RTAs or Karvy, you need to complete your KYC process if you are not compliant with the same.

3)    The document required for the KYC process is available at the AMC branch itself. Along with this, you have to carry a few documents namely, a self-attested copy of PAN, a self-attested copy of address proof, common application form (in case you take the route of SIP for investing directly).

4)    Once you submit all the required documents you need to give a cheque or demand draft in the name of the AMC after mentioning the amount you wish to invest.

5)    You will be allotted an account statement once the entire process is done.

Online mode-

A more convenient method is with the online mode where there is no hassle of visiting the AMC physically. The steps involved under this mode is as follows-

 

1)    At first, you need to take care of the KYC formalities here as well. The best thing is that it is a one-time process and it can be used across all platforms to invest in Direct Mutual Fund Plans.

2)    Now, if you decide to invest in the direct mutual fund via the asset management company website then you need to start with setting up an account with that AMC.

3)    Then you need to select the scheme available under the ‘direct’ plan type. After this, select the investment details like- SIP or Lump sum, demat or no demat, mode of payment, bank name, bank account number, IFSC, account type, and finally click the confirm tab.

4)    The next step is verification. For this, some AMCs need you to validate the submission form by an OTP.

5)    Do the payment and you are done.

 

Investing in the direct mutual fund is one of the most economically beneficial methods, to begin with. It is mainly due to the reason that it eliminates the additional costs often involved in mutual fund investment. So, compare the pros and cons of regular as well as direct investment plans and then accordingly make up your mind.

 

5 Secrets About Financial Planning That Nobody Will Tell You

Achieving financial freedom seems to be difficult, but apparently, it’s not. Financial planning is all about making a plan and sticking to it. This step requires major attention too. Following a financial plan is crucial in order to achieve financial success in life. In this article, we’ll be telling you about those 5 secrets about financial planning that nobody might tell you about:

1. Invest wisely:
   

Investing wisely is the utmost step an investor should focus on. Investors many times face loss because they didn't invest without gaining proper knowledge. People don't have any idea most of the time regarding their investment options and end up investing in the 1st option they get. It is always recommended to explore the options before selecting one.

2. Reduction in Monthly Expenses
   

This is a major step as monthly expense rise can increase your expenditures to a great level. Try to budget down your monthly expenses, not down between necessities and fancy items. In one sheet put down all the necessary expenses like your house rent, electricity bills, wifi bills, groceries, etc. then make a separate list of expenses for your lifestyle. This might include the addition of some decorative items in your house, the inclusion of new gadgets, etc. So make sure to make such a list to overcome the problem of spending more monthly.

3. Try to avoid getting a Credit Card
   

A credit card might seem like a better option to utilize whenever there is a cash crunch but is it so? You may use it to purchase something this month, but do remember that you will have to pay that amount in the coming month. Failure to pay the amount will add finance charges to your credit card, thus, you’ll end up getting yourself into a huge debt trap. Credit cardholders often are seen to pay the minimum amount, but remember that amount doesn’t create any huge difference to your outstanding bills.

4. Always make health insurance your priority

Money is not greater than health, but money is the only source to treat your health. Medical expenses, hospital bed charges, hospitalization charges, etc have increased majorly. Due to this, having health insurance is a must for any unforeseen incident. It is very important to have health insurance for all your family members. With health insurance, you will have to pay a premium amount every year for the amount of coverage you get.

5. Drive your attention towards Long-term financial goals:

Having a goal in life is very important, but working for it is more important. We all dream or have some goals, that we might not accomplish due to lack of finances or improper planning. Having a financial plan and continuing your focus towards achieving your financial goals plays a crucial role.

Long-term goals like retirement planning or say child education plan or plan to buy your own house etc. These goals are there for a longer tenure of time.

Making a meaningful impact on the lives of Indians across the globe with sound & profitable investments.   That’s the FINCART dream!