DIY (Do It Yourself) - Starting Direct Investment in Mutual Funds

Everything whatever we do first time look difficult and tedious and same is with mutual fund investment.

When I started investment in mutual fund I don’t know how to invest directly with AMC. So initially I started investment with distributor and after sometime I started direct investment.

This post is intended to people who has not done any mutual fund investment and want to invest directly through AMC.

One of my friend (Vijay Krishna) asked to write a blog about the procedure to start direct investment in mutual funds.

It takes only 2 steps to start direct investment.

KYC

KYC (Know Your Client) is mandatory for Mutual Fund Investment. KYC verification has been made common across all SEBI regulated entities eliminating the need to repeat KYC every time you open an account with any of the security market entities.

Follow the below steps to complete the KYC verification.

1. Go to https://camskra.com/.

2. Click on “Downloads” tab and download “KYC Application Forms – Individuals”. Alternatively you can download the form from here.

3. Fill the form and submit it to your nearest CAMs service centre. Find the nearest CAMs service centre here.

4. Wait for some days and check your KYC status at https://camskra.com/

First Investment

After completing the KYC next step is to apply for first investment. Some AMC like Quantum and Franklin Templeton India provides facility to invest online for first time investors.

For other AMCs you have to apply using physical application form. Please note that you have to do the below steps for all the AMCs (who does not provide online facility for first time investor) in which you want to invest

1. Download application form from AMC website and take a print.

2. Completely fill the application.

3. Attach a KYC acknowledgement with application form. You can take a print of the KYC status and it will work as an acknowledgement. 

4. Attach a cheque/DD for the amount you want to invest.

5. Send all the documents to nearest AMC office.

When your investment got processed, you will receive a folio number and after that you can ask for PIN.

Using the folio no and PIN you can create the online credentials for the particular AMC and can do the future investment online.

For some filling the application form and sending to individual AMCs look tiresome but remember when you invest directly your expense ratio will be reduced by around 0.5% that means 0.5% more return than regular plan.