How to Open Mutual Fund Account?

Home > Education > Beginner's Guide > How to Open Mutual Fund Account?
How to Open Mutual Fund Account?

In the previous article, we have given the description about “How to Buy Online Mutual Fund?” and on this article let’s proceed with the ways of “How to open Mutual Fund Account?”

Do you know why you are attracted to the Mutual Fund?

May be your answer will be the returns that the mutual fund AMC had provided.

Or else another medium for savings and to get extra earnings on it.

If you do not know how to open mutual fund account then you will get your answer through this article.

Stay connected with us and read this with more concentration so the process will become easy for you.

Let’s not tangle too much in between of the article and just let get started with this.

There are three ways you can start or open your mutual fund account:

  1. Directly Online
  2. Offline from Broker
  3. Through the Independent Portals

If you choose any of the ways to open the account, you need to complete your KYC procedure beforehand and to know about the process you can further read the same blog that have been mentioned before.

Moving further, now we will see about the different ways to open the mutual fund account and the following steps that should be need to walk through while opening an account.

1. Open Directly Online from the AMC Websites

We are taking an example of website in order for you to understand these process easily.

Process for opening the mutual fund account directly through the Websites:

  • You need to visit any of the AMC Website (eg hdfcfund).
  • You need to choose the option “LOGIN”
  • After that you need to go to the section of new investor registration and need to fill your PAN Card and DOB Details.
  • After login, you can start with the simple steps.
  • After getting the OTP, you can successfully proceed to login
  • After login, you can start with the simple steps.
  • You need to complete with the personal and investment details.
  • You will be in need to disclose the cheque or the DD amount you want to invest.
  • If your KYC document is completed, then download the KYC form.
  • Complete the process and enclose all the proof of identity, address, PAN Card, and 2 passport size photographs.
  • Then send all the relevant documents to the mutual fund customer care address specified on the application form.
  • After reviewing the process by the mutual fund customer care after that you will become the customer and with this you can directly invest in mutual funds online.
  • Then you will assigned with the Personal Identification Number (PIN) that can be used for more transaction in future.

This process can be different from one AMC house to another AMC house, but the above process gives you the basic details that is required in almost every AMC websites.

2. To Open a Demat Account offline with the Help of Brokers

All the stock brokers are to be linked with the NSE and BSE mutual fund platform.

You can open the demat account with any of the large brokers in India.

However, one demat account is sufficient for the stocks and the mutual funds.

Further, the process is listed below:

Steps for the opening of Mutual Fund through the help of Brokers:

  • Apply for the demat account with any of the broker.
  • You will need to pay account opening charges that depends on the broker you choose.
  • After that you also need to pay the annual maintenance charges depending on the broker.
  • Fill the Application Form.
  • Attach the cheque and PAN copy along with the KYC form and give it to the broker.
  • You need to receive a login ID and password for the transaction through the courier.
  • You can buy the mutual funds in SIP or a lump sum in any of the mutual fund schemes.
  • There is also the transaction fees for buying mutual funds on SIP.
  • There is also the transaction fees to buy the mutual funds in a lump sum.

3. Opening a Mutual Fund account through the independent portals

There is also another way associated for opening the mutual fund account and that is through the independent portals.

These portals makes them as different from others by not charging the transaction costs.

Here in the below table, we are mentioning the process to open the Mutual Fund Account.

  • Visit their websites of the portals.
  • Fill the account opening form of mutual fund online.
  • Take the print of the PAN Card and KYC form and attach and send them by courier.
  • Then you will get the necessary login and password to do the mutual fund transactions.
  • The unique features is that they do not charge any transaction fees for the buying or selling the units of Mutual Fund.

Things that you need to know before for opening a Mutual Fund Account:

  1. You need to know about the risk you can take
  2. Choose the right investment plan
  3. Before opening the account, you’re KYC needs to get completed first
  4. Select the Time Frame and the financial goal
  5. Select between the SIP and lump-sum
  6. Consider the Tax implications
  7. Have the Diversify kind of portfolio

About Us

We hope that you like our blog on “How to open Mutual Fund Account?” and the instructions that is important to follow in either ways. Trading Fuel is our blog site that is more into the culture of exploring the information and materials in the form of blogs of the stock market. For more any assistance, you can also share your feedback to us in the form of our e-mail Id. Read more and stay updated with Trading Fuel.


Tradingfuel © 2024 | All Rights Reserved

    Join Free Class

    Join Free Class