While applying for a mutual fund, some important things to keep in mind that you will need are you PAN, Bank Account, KYC compliant, 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 mutual fund scheme form and if you are applying for SIP, you would need to fill out two forms - to open an account and to specify your SIP details like monthly installments amount frequency and date on which the SIP sum is invested. You can fill 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 seize to exist) can invest for minors. The documents required to apply in the name of a minor are Passport, Birth Certificate or any other valid ID proof. With the help of necessary documents that provide as proof between the relationship of the child and the guardian, he/she can apply for an investment for the child.
- Reinvestment: There are three types of reinvestment plans that benefit the investor in growth, dividend and dividend reinvestment. When filling up an investment form, you will be expected to fill one of the three options and should you decide at the moment to not select any option, the funding house will select a temporary option for you that will be mentioned in the SID. It is often the growth option and investors have the option to change their previous 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 as well as regular plans that vary depending on the nature of the investment.
- Intermediaries: For a certain flat fee, an investor can gain the benefits of an intermediate. All intermediaries are registered and can be found on the online directory of AMFI. The website also contains the 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 choose to invest through an independent agent or directly with AMC. Independent Financial Advisors help you select the best mutual fund schemes along with helping you through every step of the invest. From filling out the forms to also submitting it with the AMC. To invest directly for the first time in a mutual fund, you will have to visit AMC’s office to make your investment. AMC may also provide you with 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. Online portals 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 increase 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 intermediaries. Bank intermediaries are a much safer option for investors.
- Demat: Online trading is a growing business and investors who hold a Demat account can easily 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.
