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  • What are direct mutual funds
  • How to invest in direct mutual funds
  • Investing in direct mutual funds offline
  • Conclusion

What are Direct Mutual Funds?

Simple guide to investing in direct mutual funds both online and offline for better returns.

Rs. 500 SIP = Rs. 10 lack+ in 15 yrs. Start your journey today

Mutual funds are subject to market risks. How many of us have heard this before? Yet, mutual funds continue to provide lucrative returns for investors pan India. Besides, there has been a significant rise in the number of mutual fund schemes and investors who have allotted a portion of their overall capital into such trusted mutual funds. Consequently, this has also given rise to intermediaries, both licensed and unlicensed. Opting for such an intermediary to handle your mutual fund investment needs can eat into your real profits. So what does an investor do? Let us find out:

 

What are direct mutual funds?

Direct mutual funds allow investors to invest directly without involving any intermediaries. This means that you will not be required to pay any commissions or additional fees that can eat into your returns as well. This can potentially lead to higher profits, especially if you are comfortable managing your own investments. Moreover, in the recent past, such direct mutual fund investments have only grown in terms of returns provided and number of entrusting investors.

Key takeaways

  • Direct mutual funds allow you to invest without intermediaries that help you save on commissions leading to higher returns over time.

  • You can invest in direct mutual funds either online for convenience or offline for a more traditional, personal touch.

  • You should complete the KYC process before investing in mutual funds.. It is a one time process but necessary for all mutual fund transactions.

How to invest in direct mutual funds?

You can invest in direct mutual funds primarily in two ways. These are online and offline. Besides, before you begin, it is important to choose which mutual fund to invest in, taking into account the type of fund, the AMC, and the investment amount based on your financial goals and risk profile. Additionally, you may also be required to decide between a SIP or a lump sum payment.
 

Let us find out about the simple steps involved in leveraging this important process:
 

Investing in direct mutual funds online

Here is how you can get started with simple direct mutual fund investments online:

  1. Complete your KYC verification requirements such as linking your Aadhaar card with your PAN card, address proof verification, etc.

  2. Compare various types of mutual fund options and select the one that best suits your investment goals.

  3. Visit the official website of the asset management company of your choice and click on the option to register a new account.

  4. Fill in all the necessary details in the application form such as your personal details, address, etc. Select ‘Direct’ under the ‘Plan Type’ option.

  5. Choose your preferred investment option such as dividend or growth, and whether you want a lump sum or an SIP option.

  6. Enter your bank details including bank name, account number, and IFSC code, then verify that everything is correct.

  7. After your details are verified, you will be required to complete your payment through your chosen method.

  8. A confirmation will be sent to you via email or SMS once your transaction is successful.

Investing in direct mutual funds offline

Here is more traditional offline approach to direct mutual fund investments:

  1. Visit the nearest office of the asset management company whose fund you want to invest in.

  2. Complete the required KYC process if not done already. Bring along necessary documents such as a self attested copy of your PAN card, address proof, recent bank statement, etc.

  3. Complete a ‘Common Application Form’ or an ‘SIP Form’ as per your choice.If you are opting for an SIP, you will also need to fill out a NACH Mandate to authorise automatic deductions from your bank account.

  4. Submit all required documents along with your application and a cheque or demand draft made out to the AMC of your choice for the investment amount.

  5. After successful processing of your payment, you will get a folio number for your investment and an account statement.

  6. You can use these details in the future to track and monitor the performance of your investments.

Build your wealth with SIP

Conclusion

Direct mutual funds can be a great way to grow your wealth over time. Moreover, you can invest in such funds both online and offline, as per your comfort and preferences. While online investing offers greater convenience and access to a wider variety of fund options, offline investing provides a more personal touch.
 

Visit the Bajaj Finance mutual fund platform for real time updates and find over 1000 mutual fund schemes. Use the Mutual Fund Calculator to plan effectively and always compare mutual funds to opt for the options that fit your investment goals. Start investing in mutual funds today!

Types of Mutual Funds

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Frequently asked questions

What are direct mutual funds?

Direct mutual funds allow investors to invest without intermediaries, avoiding commission fees and potentially increasing returns over time.

How do I invest in direct mutual funds online?

You can invest online by visiting the AMC’s official website, completing KYC requirements, filling in personal details, selecting the investment type, and making the payment.

What documents are needed for offline investment?

To invest offline, you need a self attested PAN card copy, address proof, and a filled application form, along with a cheque or demand draft for the investment amount.

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Disclaimer

Bajaj Finance Limited (“BFL”) is an NBFC offering loans, deposits and third-party wealth management products.

The information contained in this article is for general informational purposes only and does not constitute any financial advice. The content herein has been prepared by BFL on the basis of publicly available information, internal sources and other third-party sources believed to be reliable. However, BFL cannot guarantee the accuracy of such information, assure its completeness, or warrant such information will not be changed.

This information should not be relied upon as the sole basis for any investment decisions. Hence, User is advised to independently exercise diligence by verifying complete information, including by consulting independent financial experts, if any, and the investor shall be the sole owner of the decision taken, if any, about suitability of the same.

Disclaimer

Bajaj Finance Limited ("BFL") is registered with the Association of Mutual Funds in India ("AMFI") as a distributor of third party Mutual Funds (shortly referred as 'Mutual Funds) with ARN No. 90319

BFL does NOT:

(i) provide investment advisory services in any manner or form.

(ii) carry customized/personalized suitability assessment.

(iii) carry independent research or analysis, including on any Mutual Fund schemes or other investments; and provide any guarantee of return on investment.

In addition to displaying the Mutual fund products of Asset Management Companies, some general information is sourced from third parties, is also displayed on As-is basis, which should NOT be construed as any solicitation or attempt to effect transactions in securities or the rendering any investment advice. Mutual Funds are subject to market risks, including loss of principal amount and Investor should read all Scheme/Offer related documents carefully. The NAV of units issued under the Schemes of mutual funds can go up or down depending on the factors and forces affecting capital markets and may also be affected by changes in the general level of interest rates. The NAV of the units issued under the scheme may be affected, inter-alia by changes in the interest rates, trading volumes, settlement periods, transfer procedures and performance of individual securities forming part of the Mutual Fund. The NAV will inter-alia be exposed to Price/Interest Rate Risk and Credit Risk. Past performance of any scheme of the Mutual fund do not indicate the future performance of the Schemes of the Mutual Fund. BFL shall not be responsible or liable for any loss or shortfall incurred by the investors. There may be other/better alternatives to the investment avenues displayed by BFL. Hence, the final investment decision shall at all times exclusively remain with the investor alone and BFL shall not be liable or responsible for any consequences thereof.

Investment by a person residing outside the territorial jurisdiction of India is not acceptable nor permitted.

Disclaimer on Risk-O-Meter:

Investors are advised before investing to evaluate a scheme not only on the basis of the Product labeling (including the Riskometer) but also on other quantitative and qualitative factors such as performance, portfolio, fund managers, asset manager, etc, and shall also consult their Professional advisors, if they are unsure about the suitability of the scheme before investing.


Disclosure
: Bajaj Finance Limited (BFL) is a distributor of Mutual Funds with ARN - 90319 and distributes mutual funds of Bajaj Finance Asset Management Limited (BFSAMC). BFL receives commission towards distribution of mutual fund products. BFSAMC is a group company of BFL, carrying business on arm’s length basis without any conflict of interest and in accordance with the prevailing law / regulation.

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