Direct plans – Mutual funds – How to buy?

POSTED BY SSR ON November 26, 2012 12:26 pm COMMENTS (3)


From January all MF are directed to have direct plans which has less expense ratio and distribution charges which are given back to investor as high NAV.

Currently I have demat account and mutual funds SIP with online website. Now, if I want to take advantage of this direct plans what options do I have?

1) How to buy? — Do I need to go the AMC office directly(say HDFC), fill the form and setup SIP with them for buying direct plans?

2) How to store it? — I believe the units purchased would be in dematerialized format. So how it will be delivered to me? Do I need to provide my demat account while submitting the form to AMC to credit it?

3) Is it possible to buy this direct plans online? as we are used to do it now??

Any other information will also be useful for everyone.


Thanks and Regards,



3 replies on this article “Direct plans – Mutual funds – How to buy?”

  1. TheZionView says:


    Now many AMC allow people without any folio to create account with them if the KYC is completed already. They get all the info required from KYC

  2. BanyanFA says:

    I believe that you would have to visit the MF’s office and fill up the forms for your SIPs. After that you also have an option to either have them in physical form or in your own demat – however frankly speaking for Mutual funds, it is better to have them in physical form as demat doesn’t add to any ease.

    You can also do them online but in order to do so, you first need to have a folio which would need to be created once you fill up a paper based form.

  3. TheZionView says:

    There is no clear points in how its going to be implemented. Most certainly there will be two ways this could work.

    One going to AMC/karvy/CAMS and filling the form with direct option in it.
    Other is going to individual website and getting your registered and start the SIP/investment in direct funds.

    I dont think it will only come in demat form there will be units just like we are having now under our name as per the purchase.

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