Ways to invest in Mutual Funds.

  • On-line via Dmat account
    • Advantages:
      • NAV of that day is allocated, if traded
        during the AMC’s trading hours (usually between 10AM to ~3:30PM)

      • One place and easy
        management
        of investments

      • Easy & Transparent money
        transfer

      • Saves time spent in following up
        compared to other options

      • Can implement own plan without
        any change in decisions made

      • All features of being
        on-line
    • Disadvantages:
      • Costs 2.5% of processing
        commission/service charge

      • Depends on Computer
        technology (Software, Internet, trading site being on-line)
  • Directly with the AMC
    • Advantages:
      • NAV of that day is allocated, if traded
        during the AMC’s trading hours (usually between 10AM to ~3:30PM)

      • One place and easy
        management
        of investments

      • Easy & Transparent money
        transfer

      • Saves time spent in following up
        compared to other options

      • Can implement own plan without
        any change in decisions made

      • All features of being
        on-line
    • Disadvantages:
      • Costs 2.5% of processing
        commission/service charge

      • Depends on Computer
        technology (Software, Internet, trading site being on-line)
  • Via consultants/brokers
    • Advantages:
      • Saves time spent on reaching AMC’s and filling up the application forms
      • If the consultant/vendor is well trusted in field and you personally know about the representative, can really make your investment easy
      • You can demand for explanation of every unclear part of investment like scheme details, pros & cons and transaction confirmations
    • Disadvantages:
      • Adds another intermediary level for all communication
      • Adds delay and can change the whole plan of investment due to delay
      • Costs 2.5% and is being taken away as their commission and may also need to pay service charges
      • Possible that they also mis-guide you to reach their targets of selling certain schemes/funds or due to their insufficient knowledge in the field
      • Need to follow up to get the transaction confirmations
      • Need to understand the conditions set by vendor/consultant


Advertisements

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.