Direct mutual fund online
Mutual fund is one of the best wealth creation tools that we all know. First time when I made investment in Mutual Fund for tax saving, have no idea about direct mutual fund. I have a trading account with Axis Bank and invested online through Axis Direct and thought I have invested direct mutual fund without taking help from anyone and my investment is brokerage free. But I was wrong because Axis Direct is not an AMC (Asset Management Company), it’s a distributor. And my investment became expensive with distributor expenses /trail fees/ transaction charges. I understood my investment was in regular mutual fund not on direct mutual fund.
Benefits of Direct Mutual Fund
Direct Mutual Fund Plan introduce on January1, 2013. Direct mutual fund plan means one can invest on Mutual fund directly without distributor. So investing in direct mutual fund you will save distributor’s commission.
For example, you have invested Axis Long Term Equity Fund on regular mutual fund plan. This plan has 1.98% expense ratio. If you will invest on direct mutual fund plan, the expense ratio will be 1.28%. So you able to save 70 basis points in direct mutual fund plan. This amount may be small to someone but in case of long term investment you will realize the rate of return in more high on direct mutual fund than regular mutual fund.
Invest direct mutual fund online
PAN is mandatory for all investments in Mutual Fund. Your Pan should be KYC compliant for investing online. If you are existing investor on mutual fund or have a Trading account, you have no need to submit KYC because your PAN is KYC compliant.
Know your PAN is KYC compliant or not.
Step1. Visit https://www.cvlkra.com
Step2. Click on KYC inquiry
Step3. Give your PAN number or Applicant Name, Date of Birth / Date of Incorporation and Exempt Category and submit.
If your PAN is KYC compliant, there is no problem to invest direct plan online. But when PAN is not KYC compliant, you have to make your pan KYC compliant.
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How to invest direct mutual fund online
Now I will show you step by step procedure to invest direct mutual fund online. You will only visit on AMC website (website of mutual fund house) for buying direct mutual fund.
I am interested to buy ICICI Prudential Balanced Fund – Direct Mutual Fund and giving details procedure of that.
Step1. Visit AMC website. I will buy ICICI Prudential Balanced Fund so I will visit ICICI Prudential website
Step2. Click on Start my SIP or Lump sum investment which you want.
Step3. Enter your personal details.
Step4. Check your PAN validation.
Step5. Give investor details like Nominee Information and personal contact.
Step6. Give your Bank account details like account number, bank name, ifsc code and etc.
Step7. Confirm all given details are right. If you want, you can change any entry by clicking reset.
Step8. Next step is Investment details or SIP details. Select only direct option for investing direct mutual fund. I select SIP (Systematic Investment Plan) which means I want to invest some amount every in this scheme. This amount will be auto debited from my account.
Now click on Buy.
Step9. After click on Buy, a URN (Unique Reference Number) generate for you. Now what you will do, just log in your internet banking and follow the procedure given bellow.
STEP A. Login Internet Banking which bank details you have provided.
STEP B. Go to Bill Payment or Manage Biller tab.
STEP C. Click on Register Biller.
STEP D. Biller Category: Mutual Fund.
Biller Type: Presentation.
Biller Name: ICICI Prudential MF or ICICI Prudential Mutual Fund.
STEP E. Auto pay required: Yes.
Auto pay Limit: Full Amount.
URN: Enter URN sent by ICICI Prudential Mutual Fund – e.g. IPDIRECT-XXXXXX.
Confirm transaction by entering Bank OTP/URN received after completing stage 2.
Thank you for reading this article. If you have any query feel free to contact me via comment.
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