Tuesday, February 16, 2010

How to buy Mutual Funds directly through Fund Houses

I bought first Mutual Fund through a Fund House directly in Feburary 2008 and have never looked back. Personally, I find it convenient and very personal way of buying Mutual Funds. If you want to buy a mutual fund or open a SIP directly through fund house, please take care of following things:

  • If this is the first time you are buying Mutual Fund of this Company, carry a Xeroxed copy of your PAN Card.

  • If buying for the first time, and investing more then Rs 50000, please take one photograph of yours and proof of permanent residential address. It’s required to fill KYC (Know Your Customer) form.

  • Also, for the first time buyers, it is necessary to carry original PAN Card because it will be verified while submitting the form.

  • If you already have some mutual fund from this company, carry your folio number. New units can be bought against same folio number.

  • Different Mutual Funds of same company can be bought under same folio number. For example, if you currently have Reliance Equity Mutual Fund and planning to but Reliance Regular Savings Fund, same folio number can be used.

  • In the form, "Agent that you are buying from" field should be marked as Direct.

  • Carry at least one cheque.

  • Carry post dated cheques if you don't want to allow ECS through your bank account and want to open a SIP.

  • Know the MICR code of your bank. It’s the nine digit code in the cheque just after cheque number.

  • If your MICR code is starting with 00, it is incorrect due to some reason, most probably because your cheque is "At Par". Please get the correct MICR code, as otherwise ECS will not be possible.

    Keep all these points in mind and you can buy a Mutual Fund in 10 minutes.
  • 1 comment:

    1. You can buy online free of cost as well refer to fundsindia.com (I use them)
      All AMC have online transaction but it is not scalable solution if you are going beyond 1 AMC.