With the benefits provided to investors and pushing them towards adopting a savings and investments approach, there are a lot of options that are available and open to prospective investors so as to raise funds the safe way in order to fulfill their financial requirements, where there is no risk of getting into a debt trap of a personal loan or any type of loan, provided they are prudent in their decision making.
Here are the advantages and disadvantages of buying MFs online from the following portals:
AMC
The Asset Management Companies (AMC, offer their products to investors at the click of a button. Their websites offer the facility to transact in mutual funds online. This is the cheapest route for the investor because the facility comes absolutely free but may not be very convenient at all times.
Advantages:
- No extra cost for the investor.
- After the initial physical transactions, all the subsequent transactions can be done online.
Disadvantages:
- Initial investment requires the physical submission of documents.
- Problem in remembering PIN numbers for different AMC websites.
Broker platform:
If your broker has an online trading platform, you can buy the Mutual Funds. All you need to do is log on to the broker’s online trading terminal and select the scheme of your choice from the list of schemes available on the portal, after which, the units will be credited directly to your demat account.
Advantages
- Ability to view all your holdings’.
- Can access in-house research to facilitate proper decision making.
Disadvantages:
- Transaction costs like opening a DEMAT account and other incidental charges are incurred.
- Choice can be made from the list of schemes available with the broker.
Independent portal:
Independent web portals like FundsIndia and Fundsupermart cater to mutual fund investors. It allows you to buy and sell Mutual funds online at no extra cost. First, you need to create an online account which is free of cost with them, after which you can get access to the entire universe of mutual funds. The process is fairly simple
Advantages:
- No extra cost for the investor
- Provide you with a single log in.
Disadvantages
- Provides a consolidated view of your investments’.
- Net banking may not be possible if your bank does not have a tie up with the portal.