The 5 Benefits of Buying Mutual Funds from Online Agents

  • Posted By :
  • Monday Feb 19, 2018

Key Takeaways

  • Single Window Interface – Scheme info, trading, NAV / portfolio checks all in one place
  • One-time Documentation – Register and get KYC done once, and transact all you want
  • Privacy and Sole Discretion – Only you have an overview of your investments
  • Transparent fee/charge system – Clear table of charges is available upfront
  • Online Chat Enabled – While on the portal, all transnational doubts can be clarified simply

With every passing year, the world of finance and investments has gotten more and more electronically enabled. Today, we look at why mutual fund investments is lot more advantageous online than offline.

  • Single Window Interface – It used to be that you had an agent. He or she would call you periodically and tell you a new offering seemed right for you. Depending on what your disposable income situation was at the time, you either agreed or didn’t. If you agreed, your agent would come over, you’d fill the fund’s application form, hand over any ID copies, and your agent would handle the rest.

  • Now, all these steps can be dealt with in one, seamless online interaction (assuming you’re registered with an online fund management portal) Not only that, the portal lets you compare between funds, check their performance and track your existing portfolio. So, in one sitting, you can do everything it would have taken you 3-4 offline steps to achieve.

  • One-time Documentation – Before you transact for mutual funds, the only additional (online) step is registration and KYC. After that, all your applications are paperless. Contrast this with calling your agent over every time you need to apply for a new fund, sell a fund, or even re balance your existing funds.

  • Privacy and Sole Discretion – Not having an offline agent be privy to one’s financial information is important to most people today. It also means that you will be the sole master of the decisions you make, and not fall prey to being up-sold more expensive investment products so that your agent nets higher commissions. You’ll have access to all the research and information you need, make the choice that meets your pocket, your financial objective, and at the time that’s right for you. 

  • Transparent fee system – SEBI mandates have made the fee and commission structure simpler and more transparent than ever before.

    So why pay a commission at all? While you could buy a mutual fund directly online from the offering company with no commissions, the fee covers the convenience of multiple offerings via one fund manager, it covers the plethora of information of competing offerings made available in one place for you to make an informed decision, the ease of transacting in a single, document-free environment, and more

  • Online Chat Enabled – With an agent always on hand to text your query to, any transactional doubts can be cleared up in real-time.

The world of mutual fund investing via an online platform is more rewarding for disciplined investors who review their portfolios periodically, and rebalance optimally. For savvy investors who have diversified portfolios, depending on the range of products, you can use a single time-slot that you have earmarked for investments, to cover a range of activities, such as stock trading, mutual fund transacting, rebalancing of SIPs etc.

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