Direct Investment in Mutual Funds

[mrindia]

Of course, HDFC bank acts as 'agent' even if u invest thro' their netbanking for the purchase of HDFC Mutual Fund. The latter has its separate offices/logo. Same is true about ICICI, SBI etc

[silverbyte]

Hi guys,
I like to have a consolidated view of my holdings. Till now I was using ICICIDirect to invest in MF. But after the current rule about direct investment waiving entry loads, I want to go that way.

Can I go for direct investment and ask them to deposit the mutual fund units in my demat account? Or do I have to hold them in paper format?

thanks

[silverbyte]

any replies on the above pleasse?

[muralimr]

Demat is only for shares and can't be used for mutual fund units (with exception of ETF, Exchange Traded Funds).

Now a days most of mutual fund house provide online transaction in their site. Using this you can still use online for direct purchase and without entry load.

Refer some of the mutual funds that offer online investing (may be first time you need to invest using physical form, after that you can PIN and use online facility)

These fund houses offer online investing:
http://www.hdfcfund.com
http://www.reliancemutual.com
http://www.sbimf.com
http://www.pruiciciamc.com
http://www.birlasunlife.com
http://www.kotakmutual.com
http://www.tatamutualfund.com
http://www.franklintempletonindia.com

[VasanSuccess]

One Issue with Direct Investing is, You have to manage too many logins. also to Sell at the time you want is not so easy. Once you find the MF has earned good profit and want to sell, again you have to go to AMC. Which may not be very convinient,

As of today , I Prefer to pay 2.25 entry load to have all my funds listed under one login and sell whenever I need

Is that Me understand any concept wrong or I am different(lazy) from others?

[swama694]

no pain no gain......

[mrindia]

I donot think redemption is so tedious a process. If u have a long horizon of investment, its not difficult to visit cams/karvy office once a blue moon for dropping redemption slip. Agents charge 2.25% only for collecting forms/slips from your doorstep!
I agree its difficult for those who treat MFs as short trading tools.

[VasanSuccess]

Originally Posted by mrindia

I donot think redemption is so tedious a process. If u have a long horizon of investment, its not difficult to visit cams/karvy office once a blue moon for dropping redemption slip. Agents charge 2.25% only for collecting forms/slips from your doorstep!
I agree its difficult for those who treat MFs as short trading tools.

I agree, Neither I use Agents, They are just bunch of cheeters, They suggest mostly wrong fund for Nowise investors and ask them to go for funds, which has yearly commitment(like every year invest 10K or 25K) so that they earn good money. They really dont care abt ur risk taking ability.

But What I tell here, is Investing using Net(dmat account or bank account) so that you can really track it on net and sell/accumulte whenever you need from your desk.

Just think of this case, I bought a MF today for 25K from some AMC and their office is in Bangalore. After 3 year I need money, But after 3 years
Case 1:
I am in Chennai, And Petrol cost may be 300 and to reach The AMC office it may even cost me 300(which is entry load today)

Case 2:
I am in US, UK or some foreign country, It is even more difficult to get my money in direct mode(i am not sure, IF there is any easy way to do it)

So , I always prefer to use Internet enabled transaction rather than Direct. But for sure, I may get some concept wrong(as this is not advertise as many agent loose commision)

My question is, Is there any way, where I can still Invest directly without entry or exit load, But invest through Internet, Possible?

[mrindia]

Correct if I am wrong.
There is no such rule that one has to visit same AMC office for redemption from which it has been purchased. When you apply for fund for the first time, Bank-Acc. details have to be furnished. Your redemption money will land in same account or chq will be sent at your postal address. The folio no which is allotted to you is unique no & it can be processed from any city by AMC.
If I purchased a fund, say Tata Infra at CAMS Banglore 3 yrs ago through HDFC Saving acc chq (banglore) & shifted to Chennei today. For redemption, I have to submit the required slip at CAMS Chennei. The money will land in my banglore HDFC Acc if its still there.
O'wise I have to inform AMC regarding change in bank acc timely so that redemption money may be directed according to my demand. In both the cases there is no need to visit the previous city.
Regarding online entryload free purchase-- most of the AMCs provide this facility. You have to visit CAMS/KARVY office for the first purchase. Then you can apply for IPIN to the AMC quoting your folio no. This way you can log-in & make additional purchases in that folio on line. Your bank must be on AMC's panel & you must have net-banking facility enabled for all this
Happy Investing!

Mr India

Originally Posted by VasanSuccess

I agree, Neither I use Agents, They are just bunch of cheeters, They suggest mostly wrong fund for Nowise investors and ask them to go for funds, which has yearly commitment(like every year invest 10K or 25K) so that they earn good money. They really dont care abt ur risk taking ability.

But What I tell here, is Investing using Net(dmat account or bank account) so that you can really track it on net and sell/accumulte whenever you need from your desk.

Just think of this case, I bought a MF today for 25K from some AMC and their office is in Bangalore. After 3 year I need money, But after 3 years
Case 1:
I am in Chennai, And Petrol cost may be 300 and to reach The AMC office it may even cost me 300(which is entry load today)

Case 2:
I am in US, UK or some foreign country, It is even more difficult to get my money in direct mode(i am not sure, IF there is any easy way to do it)

So , I always prefer to use Internet enabled transaction rather than Direct. But for sure, I may get some concept wrong(as this is not advertise as many agent loose commision)

My question is, Is there any way, where I can still Invest directly without entry or exit load, But invest through Internet, Possible?

[VasanSuccess]

thanks for information, So if we do some ground work, Now, you can really save some good huge entry load money at all convinience of Net banking right.

will check about it. And very thanks for information