How to invest in Mutual Funds? – Online Offline Options

Mutual Funds investment is one of the best investment option for risk adverse investors. Mutual Funds offers multiple benefits like professional management, liquidity, diversification etc. There are multiple ways to invest in mutual funds. In this post, let’s take a look at online offline options and process of making investment in mutual funds.

How to invest in Mutual Funds?

Submit your KYC

First step towards investment in mutual funds is KYC. You need to submit your KYC form. KYC is applicable for first time investor and needs to be done only Once. Single KYC is valid for all fund houses.

You need to submit KYC form along with ID proof and address proof. You can submit KYC form to your nearest distributor, MF braches, CAMS/Karvy office or authorized banks.

KYC form can be downloaded from here.

mutual funds

Select a Mutual Fund & Scheme

Second step is selection of mutual fund scheme. There are number of mutual fund schemes like equity, debt, balance, ELSS, gold etc. Select a best mutual fund scheme based on your risk appetite, goal and time horizon.

The investment options offered by mutual funds are Growth, Dividend and dividend re-investment. It is recommended to go for growth option if you do not have immediate requirement of money.

Submit Mutual Fund Application and SIP Form

Once your KYC form is approved, you can submit mutual fund application form along with the cheque for the investment amount.

You can invest either in lump sum or via SIP (Systematic investment) route. For SIP route you can provide SIP mandate form to the fund house or distributor. This will enable automatic SIP transaction and investment in selected mutual fund scheme.

Methods to invest in the Mutual Funds

There are various methods of investing in the mutual funds. You can invest in mutual funds via agents or directly from mutual fund companies. There are options of buying mutual funds offline and online.

Direct Investment

  • Via online website of respective mutual funds
  • Via online MFU utility
  • Via respective mutual fund local office
  • Via Investor Service Center Karvy/CAMS office

Direct plans gives better return compare to other mutual fund schemes.

Investment via Agent


  • Via share broking portal like sharekhan or ICICIDirect
  • Via online MF Agents like FundsIndia


  • Via Mutual Fund Agents
  • Via distributor or Banks

It is better to invest via agent if you are first time investor. If you are familiar with process you can select direct investment method. I prefer direct investment via online method.

Points to Consider before making Investment in Mutual Funds

  • You should be absolutely clear about time horizon expected return and investment objective before making an investment. You should build your mutual fund portfolio based on your financial goals.
  • It is not necessary to invest in multiple mutual funds. Invest in few mutual funds based on your goal. It is not necessary to invest in each category mutual funds to build your portfolio.
  • Always select SIP route for investment rather than doing lump sum investment. Invest in mutual funds for the long-term at least 3 years or above. If you are a risk adverse investor you can start building your portfolio by investing in debt or balance funds.
  • Never invest in mutual funds based on tips. Carry out proper analysis and research before making an investment. If you are unable to identify mutual fund take advice from expert or CFP.
  • Carry out assessment and balance your mutual fund portfolio at regular interval. Consider STP (Systematic Transfer Plan) for switching from one mutual fund to other.
  • If your mutual fund portfolio is generating negative returns, do not panic. Don’t redeem or Stop SIPs. Avoid taking any decision based on short-term market movements. Continue your SIPs for the longer period.
  • Prefer direct mutual funds scheme. Always invest in Growth based mutual funds over dividend based mutual funds. Stay away from New Fund offers (NFOs).
  • Please Remember “Mutual Funds Investments are subject to market risks. Please read the offer document carefully before investing”.

Article by Shitanshu

Hi, I am Shitanshu. By Profession I am Engineer and working in the IT field. I am crazy about money matters and finance and love to research the same. I have written number of article on this blog. If you like my efforts kindly subscribe to this blog and also let your friends know about this website by sharing.

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