How to go online to invest in mutual funds in India?

Query of Blog Reader

 How to go online to invest in mutual funds in India

In order to invest online in mutual funds, you require following:

1. Permanent Account Number (Pan card)

 Procedure for obtaining Permanent Account Number (Pan card)

2. Net Banking Facility

(which have option for third party transfer and bill payment facility for investment in  SIP in mutual funds)

3. KYC Compliant

 

All investors investing in Mutual Funds are required to be KYC Compliant. Investors can execute financial transactions on their folios only if they are KYC compliant.

Effective January 01, 2011, KYC has been made mandatory for all category of investors who wish to invest in the schemes of Mutual Fund irrespective of investment amount for all transactions.

Forms:
Revised KYC form (effective January 01, 2012)
For Individuals : Please Click here for (New) KYC Form
For Non-Individuals : Please Click here for (New) KYC Form 

4. Folio Number 

 (This feature differ from mutual fund to mutual fund as some fund houses allow only registered (existing investors) and some allow both new as well as existing investors.

5. User ID and Password 

In order to register online, you need to visit website of mutual fund, then click on link to apply online, Download IPIN Agreement/Form, Fill all the details that is Your complete name, address and contact details, Pan number,  date of birth,  bank details i,e bank account number with MICR code and IFSC code.

Only Physical copy of application form/agreement is accepted by mutual fund.

Submit dully filled form along with KYC acknowledgement to nearest mutual fund branch.

6. Complete Registration Process

Some fund house gives you facility of creating user name and password. You can complete that process with help of IPIN. After receipt of IPIN, Visit mutual fund website, complete the registration process. After successful completion of registration process you are all set for online transaction which includes, purchase, sale, switch, change of dividend option.

But change of address and change of bank details is not allowed even if you have online access. For change of address you need to go through KYC process again and for change of bank details you need to submit physical documents and follow this new rule which is:

"For investors holding units in non-demat mode, Unit holders may change their bank details registered with the Mutual Fund by submitting a 'Multiple Bank Account Registration Form' or a standalone separate Change of Bank Details request along with the mandated accompanying documents."