Online investing of mutual funds

[sarathc]

Originally Posted by sampathreddy

If I opt for RIS from citibank (Regular Investment Scheme), Is this considered as SIP from Fund House (No Entry Load).

The answer is "Yes, RIS investments through Citi Bank are treated as SIP from fund house".

However, gone are the good days where we could sign up for an SIP on which no entry load is charged. Except for Sundaram MF and Quantum MF, all the other fund houses have started collecting entry load on SIP investments as well (since 1st of June 2006 if I am not wrong).

Ofcourse these two guys charge heavy exit load (Quantum in particular) if the investment is not retained with them for 2 years from the date of initial buying.

[sarathc]

Originally Posted by satish_goteti

I need a small clarification. While investing in ICICI mutual funds online, apart from the entry loads, is there a transaction charge from ICICI like brokerage in equities? If so can someone point me to a place on their website which details there charges?

No, one doesn't need to pay any additional transaction charge. Entry load (as stipulated by the Fund House) is all that's deducted from the investment amount before units are allotted in the investor's preferred scheme.

Originally Posted by satish_goteti

What I would like to understand is if I invest 5000 in Brila Sun MF for example, with an entry load of 2.25%, do I also pay some brokerage to ICICI?

No brokerage has to be paid by you to ICICI. Units of your preferred scheme in Birla Sunlife MF will be allotted to you at the applicable NAV for your net investment amount of (5000 - 2.25% of 5000).

Infact, ICICI gets their distributor commission from Birla Sunlife MF directly due to your investments. ICICI is happy with what they are getting that way, they haven't been collecting transaction/service charge from the investor as of now !!!!!

[dominicsp]

[i]You can use Citibank Online to invest in those Mutual Funds in which you already hold some units. However, if you have yet to subscribe into a particular fund you would need to fill in the documents required by the Fund houses. You may contact our Relationship Managers at the Citibank Branch closest to you.

U can invest in any of the funds offered by Citibank without any documentation. U can do all that online without talking to the Relationship manager

Citibank offers you the facility to set up a Systematic Investment Plan. We request you to contact our Relationship Managers at the Citibank Branch closest to you, who would help you fill in the necessary documents.
If I opt for RIS from citibank (Regular Investment Scheme), Is this considered as SIP from Fund House (No Entry Load).

SIP or RIS is one and the same and the same loads of the fund houses apply here too, Citibank does not charge anything extra.

And they didn't mention about any MIN balance requirment in the website. Can somebdoy tell me some details about this.

The charges are displayed on the website under the heading schedule of charges, please check http://www.online.citibank.co.in/portal/newgen/ScheduleofCharges.pdf

I have a 5K min balance, so I have a 20K ELSS fund which takes care of my minimum balance for the next 3 years, so a balance in the investment account is also considered.

Hope this info is useful

[ravi_s_ghosh]

I have been using india infoline for MFs as i'm a trading member of the same broker too. They have tied up with almost all the fund houses and allow the basic, buy and sell, options. One does not need to open a trading or dmat account to be able to buy/sell MFs. You can just register at their website and send them relevant documents with your signature. They will activate it and you will be able to transact. They do not charge anything extra, it is just as you go to a distributor and fill form and give cheque, no additional charges. but there is a drawback. you need to make your investments before 10 a.m. to qualify for that day's NAV.

[Venkat_Tiruchy]

Dear Team,

Is anybody currently doing Online Investment of MF like purchase, redeem and switch request through ICICI Direct?

i have few queries regarding the transcation.

1. do we need a DEMAT A/c if we are investing only on MF's

2. other than an ICICI Savings A/c, for fund tranfer does ICICI Direct allows to map other bank Saving A/c like HDFC, CITIBANK and etc?

3. do they charge any amount for transferring existing Mutual funds folios ( which purchased through normal mode)to ICICI Direct online?

prompt reply will be highly appreciated.

regards
Venkat

[geetha]

Venkat,

The following are the answer for ur queries as per my knowledge as I have been using ICICI for Mutual funds as well as trading.

1. Yes you need a dematt a/c for investing in MF's. It usually comes as a package of 3 savings, Dematt & Trading. If u have Saving ucan link with other 2.

2. No I dont think u can link other bank a/c's with ICICI but u can transfer money to those specified bank a/c's

3.I dont think u can convert the paper format Mf's to Dematt a/c like we do in Shares. U can only buy MF's thru ICICI.

In all the aspect I will suggest ICICI is a good one to open a a/c as it has all the facilities under one roof.

Thanks,
Geetha

[sharantaka]

Dear Venkat,
Regarding your querry about on line transactions like purchase, switch, redeem in mutual funds through icicidirect.com, I have to state as follows
a) I have purchased MF units on line many times, but have never switched or redeemed units, but I think their order filling form is pretty straight forward, so switching or redeeming should not be a problem. It takes about three days for MF units to come in to your demat account from the date of order
b) Regarding converting your ordinary MF accounts in to icicidirect on line accounts, the procedure is quite complicated, First you require NOC from your original broker or the fund house, if you get that NOC, there is a form to be filled for transfering your MF units to icicidirect.com account
Trust this info helps you
Regards
sharantaka

[Venkat_Tiruchy]

Dear Team,

after a long year of experience, i realized that investing in mutual funds as well as Shares using conventional way(by filling forms) was quite combersome and difficult to track the updates and paticularly very difficult to do the additional purchase/switch/redeem and etc.

in the search of "Online Trading of MF's and Shares" what i came to know was.

a. Banks those were offering online trading facility

1) ICICI - ICICI Direct
Advantages -- all 3 in1 a/c, purcahse of MF's as well as Shares through online.
Disadvantages:- fund transactions can happen only through a single ICICI A/c, and other Bank A/c cannot be linked, more brokerage.

2) HDFC - HDFC Securites and HDFC Netbanking
Advantages -- allows only selective AMC MF purchase through netbanking.less brokerage for shares trading compared to ICICI.
Disadvantages:- only Shares can be purchased thrugh HDFC securites and no mutual fund purchase, same like ICICI no other A/c other than HDFC can be linked.

a. Others ---those were offering online trading facility
1) Religare Securities
- they claim that online trading of MF as well as shares with multiple A/c linked with HDFC, ICICI is possible.
- They collect one time Demat charges and thereafter free for life time

2) Kotak securities - no idea.

3) India Bulls - no idea


Now team, i need your expert advice that

1) other than ICICI Direct or HDFC who are all the others offering Online trading of MF as well as shares with multiple A/c linked with HDFC, ICICI?

2) who are all other than these Banks were reliable and popular?

3) any body have experinced about Religare?

4) doing online trading with these Non-Bank portals are wether safe?

it will be very much appreciated if i could get a prompt response on this subject.

with regards
Venkat

[muralimr]

Here is feedback/update on MF online investing

Citibank is having online MF purchase/redeem/SIP and currentlt they support 8 mutual fund houses (Birla, HDFC, PruICICI, Franklin Templeton, Principal, Fidelity, Reliance & DSP ML). No demat needed and no annual expenses to buy mutual funds.

Kotak also provides MF online using Kotak securities online services and list is similar to ICICI Direct (90% of fund houses supported). User interface is not as good as Citibank/ICICI Direct.


I do invest using Citibank, ICICI Direct and Kotak Securities. I want to invest for long term. I am in dilemma to do online or offline. Currently Fund House gives commission to these bank/brokerage house. So they donot charge anything from us.
In future, if fundhouse doesn't provide any commission to these banks, then these banks will try to get money from us.

Any ideas?

[gabbar.singh]

Originally Posted by Venkat_Tiruchy

2) HDFC - HDFC Securites and HDFC Netbanking
Venkat

HDFC Netbanking is not at all suitable for trading in liquid funds. They keep all the money collected for one day before sending it to AMC. I don't know if it is ethical practice on their part but it results in delay of one day.