While applying for a mutual fund, some essential things to keep in mind that you will need are your PAN, Bank Account, KYC compliance, MICR, and IFSC details. By organizing all your documents beforehand, here's how you can apply for Aditya Birla Sun Life Mutual Fund:
- Application Form: Each investor will need to fill out a mutual fund scheme form. If you are applying for an SIP, you would need to fill out two forms—to open an account and to specify your SIP details like monthly installments, frequency, and the date on which the SIP sum is invested. You can fill out the form online or visit the nearest mutual fund office.
- Minors Can Invest: By filling out a third-party declaration form, parents or a court-appointed guardian (in case both parents cease to exist) can invest for minors. The documents required to apply in the name of a minor are a Passport, Birth Certificate, or any other valid ID proof. With the help of necessary papers that provide evidence of the chchild'selationship with the guardian, he/she can apply for an investment for the child.
- Reinvestment: Three types of reinvestment plans benefit the investor in growth, dividend, and reinvestment. When filling out an investment form, you will be expected to fill out one of the three options, and should you decide to not to select any option, the funding house will choose a temporary option for you that will be mentioned in the SID. It is often the growth option, and investors can change their previously selected options of reinvestment in the future.
- Direct Plans: A plan that will not charge you distribution expenses or a commission as you are an investor without a distributor. The benefit of the direct plan is even though you have the same portfolio, you will still receive a higher return on your mutual fund. Investors can apply online or offline for direct and regular plans that vary depending on the nature of the investment.
- Intermediaries: An investor can benefit from an intermediate for a specific flat fee. All intermediaries are registered and can be found in the AMFI online directory. The website also contains a list of suspended intermediaries for malpractice to protect investors. On the other hand, the benefits of the intermediary are numerous, they help you fill out the mutual fund form, submit the form and documents for you at the office and deliver you your Account Statements.
- Through IFAs or Directly with AMC: Investors can choose to invest independently, meaning without any agent, or decide to invest through an independent agent or directly with AMC. Independent financial advisors help you select the best mutual fund schemes and help you through every step of the investment process, from filling out the forms to submitting them to the AMC. To invest directly in a mutual fund for the first time, you must visit AMC’s office to make your investor's. AMC may also provide services like sending an agent over to fill out the form, collect the cheque, and send you feedback.
- Online Investment or Through Bank: Online portals are a safe option for first-time investors as they can track amounts and redeem investments. They are connected to banks and charge a setup fee for smoother transactions in the future. Investing in online portals gives you the freedom to invest in multiple investment schemes and increases your earning potential. Investors can also directly visit their nearest bank branch and invest in fund schemes of their choice, as the bank also acts as an intermediary. Bank intermediaries are a much safer option for investors.
- Demat: Online trading is a growing business, and investors who have an account can quickly sell and buy mutual fund schemes. The work is paperless and safe, and you must possess an Aadhaar card. Investors save up to 90% on brokerage costs, manage all investments through a single account, and trade in stocks.
