Do I need a demat account for investing in mutual funds through SIPs?

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logistopath

logistopath

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More than 3 years into my marriage, I am finally able to draft a positive balance budget nowadays. I am planning to invest at least 5 to 10% of my monthly income in mutual funds through SIPs. Now, I already have an ICICI direct account in my wife's name. Should I now open a demat account in my name to invest in MFs? What are the other options available? For obvious reasons, I want the MFs in my name.

I've heard of opening accounts with the AMCs directly, but as per my understanding, we need to have login credentials and PINs for each AMC separately (& also involves initial offline work), which looks a little too cumbersome to me. Is there any other option other than a demat account to handle all MF transactions from a single place? Please clarify and suggest.
 
You'll buy MFs in SIP, for which you'll get reciepts from the bank/amc. No demat required for SIP. And if you want a monthly investment plan, look no further. Just find out about the funds the bank will be investing in.
 
No demat account is required for SIP...I have given SI so money is automatically deducted from my account...they email the receipt and statement to my email id...which can be used for IT deceleration...
 
So, should I directly buy from the AMC's website and link my bank account to the SIP? What would be the procedure for the same. As of now, I do not have an investment in a MF. Let us say I want to start an SIP in HDFC Tax Saver fund.. The site says I need a folio number and PIN number as a prerequisite. Where do I get these? From what I understand after going through the FAQs in the site, I think I should already have a MF investment before applying for online transaction rights. Is that correct?
 
Now a days you can invest in mutual funds via both physical way or demat way,.

Demat is not mandatory.

I personally feel physical way is better than demat way.

You can take help of vendors like Karvy, NJIndia, Perfect or even your banker at branch.

Only first time you need to provide physical certificates to AMC, there after the process is much easier.

Also almost all AMC now allow you to start sip and reinvestment without any registration and PIN.

New facility is that if your register same email with every AMC you can get consolidated statement of all your investments across all AMC via email instantly so tracking is quite easy now a days.
 
I have HDFC Tax Saver SIP...and I had invested via an agent...he came to my home and collected the documents after filling up some forms...try to get in touch with them...they would tell you the actual procedure...
 
logistopath said:
So, should I directly buy from the AMC's website and link my bank account to the SIP? What would be the procedure for the same. As of now, I do not have an investment in a MF. Let us say I want to start an SIP in HDFC Tax Saver fund.. The site says I need a folio number and PIN number as a prerequisite. Where do I get these? From what I understand after going through the FAQs in the site, I think I should already have a MF investment before applying for online transaction rights. Is that correct?
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You will require to open atleast 1 folio with the AMC (HDFC in this case) to get the online transaction facility (HPIN). And after 1 Jan 2011, you need KYC compliance to invest in MFs. So what you need to do is fill and submit the form physically with PAN and KYC copy. You will get a folio no. within couple of days. Then you can apply for HPIN by filling another form physically. You will get HPIN details via post within one or two weeks. Then you can start investing online (in HDFC MFs) using that HPIN
You can submit the form in HDFC offices or CAMS office.

I also have SIP in HDFC TaxSaver fund. I have started 5 SIPs of 500 each on 5, 10, 15, 20 and 25th of each month to get the best benefit :cool2:
 
^^ Thanks for the elaborate reply. That cleared some of my doubts.

So, anyone using any of the sites I mentioned above..?
 
logistopath said:
^^ Thanks for the elaborate reply. That cleared some of my doubts.

So, anyone using any of the sites I mentioned above..?
Click to expand...
I have heard good things about FundsIndia (no first hand experience though). No idea about Fundsupermart.

But if you are going to start SIP that too in 1 AMC, then I don't see any major problem in submitting the first couple of forms physically...unless you are being too lazy :P
Aleast I prefer this way... and I am VERY lazy :D
And if you don't have KYC, fill that form NOW coz it takes atleast 2 weeks to process
 
I dont have any experience with the links you provided.

But I do have experience with few companies I am giving you their Indore location, just give them a call and they will come to you personally to do all the formalities, and the cheque is always written on the name of AMC so no chance of fraud. :D.

Karvy
INDORE
203, 204, 205, BALAJI CORPORATE,
NEAR CUREWELL HOSPITAL,
JANJIRWALA CHAURAHA
INDORE
Madhya Pradesh
INDIA
PIN CODE: 452 001

PHONE :
STD CODE 0731
4081500 TO 4081518

EMAIL :
indore@karvy.com
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NJ India :
Location Name : Indore
113, Bansi Trade Centre,
M. G. Road,
City : Indore - 452001
State : Madhya Pradesh
Country : India
Phone : 91-731-3294450
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Prudent Advisory:
Indore
Mr. Sarvesh Rege.
205,Diamond Trade Center,
2nd Floor,Above J & K Bank,New Palasia,
Indore - 452001
Madhya Pradesh
Contact: 0731-4281144/55
Fax No:
Email: indore@prudentcorporate.com
Click to expand...

my experience with all three is good. they also have personal websites, they give you id and password so that you can view all the investments through them.

Just give them a call, tell them you have "X" amount to invest, Give your Professional prefix :P and you will have a queue of advisors at your doorstep to serve you. :P

I started with NJ and then Karvy, my cousin too franchise of Prudent so I have experience of all three. Now a days I prefer to contact the local AMC head directly to put a large sum in, my personal folios are being managed at Birlasunlife, HDFC, and ICICI AMC local branch heads, but you need about a million bucks to get the response.

--- Updated Post - Automerged ---

PS : Addition
You need a physical transaction with every AMC for the first time to enroll. (You will need Copy of a PAN Card, A cheque(to initiate the first transaction or first installment of SIP), Copy of a cheque or cancelled cheque to start ECS for SIP, and An address proof for KYC.)

After you get folio no. 48 hours in general will be the time you need (T + 2 days), you will get email with statement, use those details to register at their website and you will be able to handle all the information later online.

still online purchase of Mutual funds is not like e-commerce that you log in select a scheme and purchase, few AMCs do allow, few dont but I am sure with initiation in investment you are not looking at 2/3 AMCs at the max.

Feel free to call anytime for more information. :D
 
@RVK2488: Super lazy is one reason.. Not having a fixed address for the next couple of months is another reason. I want to keep most of my transactions online only at least for this period.

@ medpal: Mighty thanks for taking all that effort. :) Will definitely call you sometime.
 
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