Online and Offline MF (SIP)

POSTED BY Nagarajan ON February 2, 2013 11:18 am COMMENTS (8)

Manish,

Please advice is it worthful for purchasing SIP funds through ICICI direct (where I am having account). Some people saying online charges/commission’s are more compare to offline purchase. 

Regards,

Nagarajan

8 replies on this article “Online and Offline MF (SIP)”

  1. Raj says:

    IMHO best fund houses in India offer decent to good online services, this include HDFC, DSP Blackrock, Quantum and Franklin Templeton. So my advice would be, stop investing in MF using ICICI direct and go to nearest AMC service centers for one time registration and creating a PIN. Rest everything you should be able to manage online. Of course you will have to login to 3/4 websites to do the transactions but for tracking there are many websites like Perfios etc.

    Good luck with your investments.

  2. Dear Newbie, by P/F means you are using Karvy’s brokers’ code to invest in MFs of your choice. In this case it ‘ll not be treated as direct investment & no saving for you.

    When you are using the RTA – Registrar & Transfer Agent service of Karvy, you are actually investing directly to your MF.

    Hope it clarifies the doubt.

    thanks

    Ashal

    1. Newbie Investor says:

      Thanks Ashal

  3. Newbie Investor says:

    Dear Ashal,

    Could you please explain two different approaches: Karvy P/F vs Karvy RTA ? What it is exactly ? From your above comment, I understood Karvy P/F would act as a broker. What P/F and RTA means ?

  4. Dear Newbie, I’m also trying to understand your query. So at any given point of time, you ‘ll be dealing with 5-7 AMCs. Am I understanding you correctly here?

    If yes, my dear friend, where is the need to to go with so many AMCs. At best you require only 2 or 3 AMCs.

    In case of registration with Karvy P/F, please do note here Karvy ‘ll be a broker & rest you know as usual what ‘ll happen next. Applying directly for investing using Karvy as RTA & applying on Karvy P/F are 2 different things.

    Thanks

    Ashal

  5. Newbie Investor says:

    HI Ashal,

    Does it really save too much brokerage on directly investing with AMCs for long time SIPs (10-15 years) ? But if my funds belongs too different AMCs, then would it become difficult to manage them as I am assuming there won’t be common platform(as provided by brokers like HDFC securities, et.al.) for managing the funds ?
    If I registered with Karvy for mulitple AMCs, do they provide common platform for managing funds from different AMCs ? Should we prefer Karvy over HDFC Securities ?
    (Really sorry for many questions 🙂 But kindly help me to understand this )

  6. Dear Nagarajan, if you can take a bit of pain for one time leg work to enroll yourself for online direct investing with the AMCs of your choice, you should not opt Icici Direct or any other broker.

    Interestingly, you may enroll yourself for multiple AMCs in a single visit to CAMS or Karvy.

    Over the long term 20-30 years, yes the pain taken by you ‘ll result in a far larger corpus than the I-Direct option.

    Thanks

    Ashal

  7. The difference is not due to offline or online. The difference is due to the mode of purchase. Whether you go through a broker like ICICI direct or get it directly from the MF house.

    If you can choose your own fund investing directly is advantageous else go through a broker who offers fund selection services

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