In recent times, mutual funds have become quite popular among investors. This is partly due to the simplicity of the investment and the potential for diversification. They’re good investments for both new and experienced investors. However, Do you know how to Invest in Mutual funds without Demat account?
If your answer is no, let’s discuss this topic in detail to invest in mutual fund without trading account.
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How to Invest in Mutual Funds without Demat Account?
There are numerous mutual funds from which you can select. You can find them on the websites or apps of the majority of mutual fund companies.
So, if you’re looking for how to invest in Mutual Funds without Demat account, Here is the answer. You just need to register online with details and documents which they ask for. They will give you a PIN number and a folio number on your email.
Use these to complete the sign up on the Mutual fund firm’s online platform. Nevertheless, before the corona period You will have to go to the fund house in person once.
Submit the application form together with a copy of your PAN card, Cheque of the initial amount you wish to invest, and your KYC documents. Now you don’t need to do that.
Note:
The disadvantage is that you will have to go through the application procedure again with each fund house if you wish to invest in different mutual funds. It can be difficult to keep track of various folio numbers and PINs.
Options to Invest in mutual fund without demat account
Here are the major options to invest in mutual fund without demat account:
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Mutual Fund Company (Asset Management Company)
You can always invest in a mutual fund simply through the asset management company platform. You can only invest in mutual funds from one AMC this manner, of course.
Investing only in particular AMC’s mutual funds is also a terrible idea because it limits diversification.
AMCs would, understandably, prefer to promote their own mutual funds rather than promoting mutual funds from rival AMCs, which may be important to protect you from exposure.
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Third-party Online platforms
A list of mutual funds is available on many independent sources including google. You’ll need to create an internet account and register. The majority of these portals will require you to download and submit an application form.
the portal will process your KYC, If you haven’t done that already. You may quickly buy or sell funds online once you’ve registered your login.
These portals also give you access to an online platform where you can monitor your investments.
Note:
If the website does not have a partnership with your bank, you may have challenges. In this scenario, online banking may not be an option, and you’ll have to depend on alternative payment methods, such as a credit card.
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Registered Mutual Fund Agents
The Association of Mutual Funds in India has hundreds of registered mutual fund agents (AMFI). The database of these agents can be seen on the AMFI website.
These agents may even come to your home to assist you in locating the best investment opportunities. These advisors can provide you with information on the most recent schemes or market movements.
They’ll even submit your paperwork on your behalf. You should look for agents based on their qualifications, expertise, and skills.
Note:
The most important thing is to choose the greatest advisor. There are a lot of registered advisers who aren’t very active. These experts may be unable to assist you in choosing among good and bad schemes.
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Transfer Agents of Mutual Funds
Transfer agents are the greatest option if you don’t want to go through the effort of contacting each asset management business or choosing the right consultant. These are offices that serve as a go-between for you and the mutual fund business.
They serve as a point of contact and can assist you in completing the various paperwork. Transfer agents have all of the details on upcoming and current fund offerings.
They do not charge the buyer any money and instead receive a portion of the company’s profits. They serve as recordkeepers and can give you with all of your consolidated mutual fund statements at any time.
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Banks
Among the most common methods is to go to your bank and inquire if they sell the mutual fund you want. Mutual fund agents are also banks.
Just be cautious of mis-sellers who may try to encourage you to invest in specific funds so that they can get the most fee possible.
When you’ve determined which mutual fund to purchase this is also the finest solution.
Reasons to invest in mutual fund without demat account?
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Easy Process
If your paperwork is in order, you can join with them & start investing in less than 2 business days.
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Free
Customers are not charged any fees by several third-party apps or transfer agents. They don’t charge you anything whether you invest in a lump sum, through a SIP, or merely wish to follow your investments. When you invest in mutual funds, they receive a nominal distributor’s income.
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No physical Visit
Mutual funds can be purchased from anywhere in the globe. Third party app’s entire business is conducted entirely online, with no physical visits required.
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Fully Digital
Opening an account with us is a completely digital method. They do not require printouts of your documents to be sent to us. Alternatively, easily take photos of them and submit them to their website.
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KYC on Video Call
They can also complete your in-person identification online if you are not KYC compliant. This is accomplished through a video call.
Conclusion
Mutual funds are one of the key investment types nowadays due to their easy process and good returns. However, the most difficult task is choosing the right mutual fund.
This is all from our side regarding invest in mutual fund without demat account. Let us know your views about mutual fund without demat account in the comment section.
Other Interesting blogs related to mutual fund without trading account
Mutual Funds in Demat Account Pros and Cons
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FAQ About how to buy mutual funds online without demat account?
is demat account required for mutual fund?
No, If You Don't want then you can invest in a mutual fund without demat account.
Is it better to buy mutual funds through demat account?
It totally depends on your requirements. You can go through this article for more information.
Is Demat account required for stock market?
Yes, If you wish to deal in stocks or commodities than you need a demat to do that.
Can I invest in index funds without demat account?
Yes, You can invest in Index funds without Demat account.
Is Demat account required for Groww?
No, If you don't want to buy stocks or commodities on groww then you don't need demat account.
