Investing in Mutual Funds Directly with AMCs

POSTED BY harishj ON October 18, 2013 2:58 pm COMMENTS (3)

I want to invest directly to the AMCs and I have the folio numbers for all of them (through my existing investment through my demat account. So current MF folios are held in demat form). Now, the problem I am facing is that when I speak to the respective AMCs, they say that they can’t update my email id/mobile no etc (which is required in most of the AMCs to invest online) since its a demat folio and the changes can be made only by the demat provider.

My demat provider says that there is no need to update anything in folio and any information/service will be given by us (i.e. the demat provider sharekhan). Worse, some AMCs are saying that even after I register on their websites, I can’t invest using the same folio as that is a demat folio and any purchase/redemption request can only be placed through sharekhan. (e.g. I have registered with ICICI pru tracker and I am able to see my investments and their system is allowing me to purchase/redeem but customer care it saying it will be declined later on because its a demat folio)

Is there any work around for this? ICICI pru guys are saying either I should open a new folio with them by making first physical investment or I should covert my demat folio into physical form by submitting a request to sharekhan and then I can directly transact from their website.

Kindly guide me or let me know the right person who can guide me.

3 replies on this article “Investing in Mutual Funds Directly with AMCs”

  1. harishj says:

    Thanks a lot Sumit and Ashal for taking out time to respond.

  2. Sumit says:

    HI harishj,

    I am telling this from my personal experience. You will not be able to invest in DIRECT plan by the DEMAT portfolios – that Sharekhan or other distributors open for you. You should be able to register by your mobile no/email id etc and can see the details for that DEMAT portfilo, but any investment in that will only go to the regular plans.

    So, to make investment in DIRECT plan – you have to open a new portfolio – with a pain of 1 time visit and documentation process. I know better as I did the same. 🙂

    Thanks
    Sumit

  3. ashalanshu says:

    Dear Harish, Please invest with a new folio number. At the same time apply to convert Demat units in to Physical units. Once the Physical units are with you, apply for folio consolidation from old to new one.

    Thanks

    Ashal

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