Well Sebi says now you can buy a mutual fund from a stock broker. Of course Sebi and Amfi have added (very sternly) that brokers who sell mutual funds should also pass the Sebi exam (wrongly called the Amfi exam).
This is hilarious at best. There are banks where in one city there would be one or two people who have passed the exam and all applications are routed through these guys immaterial of who actually sells (oops Sebi). Similarly for insurance selling by “IRDA” exam passed people. Currently passing the exam is a joke. LOL or ROFL.
You can buy through a bank (Hdfc bank charges are nil for an sip) and Citibank and Hsbc are at the other end (they charge a %age of the amount invested). The bank will give u the necessary support of filling up the form, banking it etc. Surely like you open a savings bank account you will soon be allowed to open a “Mutual fund account” where you can buy, sell, do sip,…just like opening a Fd, recurring deposit etc. It is just a click away or it is already there and I have not seen it.
You can go directly to the website of the mutual fund….
You can ask your friendly neighbourhood mutual fund distributor and ask him to do it for you. Many are eager to still do it, some of them will disappear.
You can go to tested and untested websites who claim to be aggregating applications.
You can go to a broker, buy a mutual fund and hold it in a demat mode. This is perhaps the stupidest way of buying a piece of asset which cannot be borrowed against, loaned, gifted, transferred….! Am not sure but when Mastershares and MasterGain schemes of UTI were launched they were in ‘physical form’. Then Mr. Prasad (S V Prasad I think – he spent a long time with Birla Mutual Fund) came up with a simple idea to issue a ‘holding letter’ rather than a value document. This is like having a bank statement instead of the underlying cash. Losing a certificate meant a lot of headache. Losing a statement does not matter at all.
Imagine holding a portfolio of Rs. 1 crore in ‘demat’ form – pay a %age of that as fee…I am impressed by what people can do! God bless them.
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