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Mutual Funds: A Look at the Online and Offline Modes of Investments

With many online and offline mutual fund platforms available today, it could seem daunting for an investor to decide which mode to choose. Gaining insight into these methods is crucial for investors as it will aid them in picking the most suitable method that addresses their needs.

Online mode

Mobile apps and online platforms: Today, there are several mobile applications and online platforms available at the click of a button. While being easy to use, they allow investors to examine and analyse various mutual fund schemes before deciding where they can invest their money. These stages regularly offer additional tools for assessment and portfolios to the board. Firstly, investors should always check the credentials of the platform prior to investing.

Direct investment via resource houses: Investors can visit the official websites of Asset Management Companies (AMC) or fund houses and invest directly in the mutual fund schemes of their choice. Investors are required to create an account on the respective online platform of the fund house.

Mutual Fund Utilities (MFUs): These are shared platforms by multiple AMCs where investors can invest in various mutual fund schemes. Investors are required to register with an MFU; this way, they can transact across multiple funds.

Offline mode

Banks and financial institutions: Investors have the option to visit a bank or financial institution that provides the facility for investing in mutual funds. They are required to fill out a form and complete the Know-Your-Customer (KYC) formalities to open their accounts.

Enrolled subject matter professional experts and vendors: Authorised agents and distributors can also provide their services to open a mutual fund account. These experts or vendors also offer investors professional guidance and suitable advice on mutual funds.

Reaching out to Registrar and Transfer Agent (RTA) offices: Investors can also visit R&T offices to complete mutual fund transactions. This method may require more paperwork and time, as opposed to online alternatives.

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