How to invest in Mutual Funds in India ?

1) Through Agents or Brokers-. In this option you choose the agent and call him, he will come to you and fulfill all necessary formalities like collecting necessary documents for KYC purpose, taking signatures and submitting the forms to respective mutual fund companies. You no need to bother about processing part. This type investment is completely OFFLINE mode for you.

2) Mutual Fund Companies-All mutual fund companies provide you to invest directly. Here in this mode of investment first you need to download the forms, submit it with filling and submitting the necessary documents (if KYC not done previously). Once the folio (it is like your bank account number and will be unique) is generated , you can invest online.

3) Through Online Portals-Many have great misconception that investing through online portals like Funds India or Fundsupermart is best and cheapest mode of investment in mutual funds. But,these online portals even though not charge you anything upfront as cost, they collect the commission from mutual fund companies and will be adjusted to your NAV.

4) Through online Demat Accounts- This type of investing is through your demat accounts where you use this account for your stock trading or holding stocks. These stock brokers such as ICICI Direct, HDFC Securities or Sharekhan offer you investing in mutual funds. But usually each SIP or investment is charged here directly from your investments and also they receive commission from respective mutual fund companies. So even though this option seems to be online but costlier than the option of Online Portals.

5) Through CAMS or Karvy-These are like middlemen between you and mutual fund companies for record keeping and processing and will be appointed by mutual fund companies. Currently they offer online investments only for selected mutual fund companies.

6) Banks- Banks have access to your account details. Their only motive is sell and are least bothered about analyzing your requirements. Also you are not sure the current employee who is very much friendly with you now may be there for long in the same bank and branch to guide you in future. Hence it is always best to AVOID investing through Banks.

So there are many ways to invest in India either online or offline according to your comfort. Choosing the right service for investing will actually ease your life.