How to Start Investing in Mutual Funds Online or Offline in 2025

If you’re new to investing and wondering how do I invest in a mutual fund, you’re not alone. Mutual funds offer a simple way to grow your money, even without stock market experience. With the right plan and scheme, you can start easily. This guide will help you learn to invest in mutual funds step by step.

What are Mutual Funds?

Mutual funds pool money from many investors and invest it across stocks, bonds, or other assets. A professional fund manager handles the investment decisions to generate returns. You can easily pick a mutual fund based on your goals and investment horizon. Since experts manage the process, mutual funds are a great option for beginners. Making it an ideal option for those who want to grow their money with minimal involvement.

Why Should You Invest in Mutual Funds?

Before we get into how to start investing in a mutual fund, let’s understand why mutual funds are such a popular choice in India. Mutual funds offer various benefits that make them a standout choice for investment. Here are some of them. 

• Diversification: Since you can choose multiple schemes across debt, equity and a combination of these, you can easily balance your risk and reward with mutual funds. You can also adjust your portfolio with age and time. 
• Flexibility: There is so much variety in schemes that you can choose one or more based on your risk appetite and financial objectives. What’s more, you can also withdraw when needed based on the type of scheme you have chosen. 
• Professional Guidance: Fund managers manage your investment and make the right calls based on market dynamics, so you don’t have to. Their experience guides them to facilitate growth for you along with the other investors. 
• Liquidity: You can invest in open-ended funds, which allows you to liquidate your units as per your choice. This gives you ready access to funds when you need them. 
• Access and Affordability: While other investment options require a lump sum investment, MFs are not limited as you can also make regular investments through SIPs (Systematic Investment Plans). 
• Tax Benefits: You will also get tax benefits if you invest in certain funds, such as ELSS (Equity Linked Savings Schemes).
• Regulatory Body: In India, SEBI ensures the security of the investors by enforcing some rules and regulations. This helps you invest in money markets more confidently. 

Also Read: Mutual Fund History

What are the Different Ways of Investing in Mutual Fund Schemes?

There are many ways you can start investing in mutual funds. So, if you are wondering how to invest in mutual funds in India easily, here are some options to get started:

• Through Asset Management Company (AMC) or Registrar and Transfer Agent (RTA): You can invest directly on the AMC’s website or through RTA platforms like CAMS or KFintech. These let you pick direct plans with lower fees. It is an ideal option if you are confident about choosing funds yourself.
• Through distributors, banks, or stockbrokers: Distributors, banks, and stockbrokers help you invest in mutual funds by suggesting schemes based on your profile. They usually offer plans that have a slightly higher cost due to commissions.
• With help from a Registered Investment Advisor (RIA): If you want expert guidance without any AMC-linked commission, you can consult an RIA. They help you invest in direct plans and charge a fee for their advice.
• Using mobile apps: Many AMCs, RTAs, distributors and brokers offer mobile apps. These apps make it easy to start SIPs, invest in a lump sum and track performance anytime.

How to Invest in Mutual Funds Online?

If you prefer the digital route and want to know how to invest in mutual funds, you have the following options:

• Create an Account on the AMC’s Official Website

Every Asset Management Company (AMC) has their own website. After comparing the most suitable option, you can register for it. After entering your details and completing KYC verification, you can begin your journey. There are many payment modes available for you to start investing. 

• Download an AMC-provided App

Another way to invest in mutual funds easily is to register on the AMC’s or brokerage’s app. You can choose from multiple options and invest easily on the go. The process also requires you to enter your personal details, complete the KYC process and get started. 

Steps to Buy Mutual Funds Offline

While online methods are popular, here’s how you can invest in mutual funds offline:

Step 1: Choose the AMC
Pick a trusted Asset Management Company (AMC) based on its track record, fund manager’s experience and expense ratio.

Step 2: Complete KYC
Submit the required documents for KYC. Once verified, you are ready to invest.

Step 3: Find a Scheme
Select a scheme based on your goals, risk appetite and investment period. Choose equity funds for long-term growth or bonds for lower risk.

Step 4: Apply for the Scheme
Visit the AMC office, fill out the form and submit your KYC, FATCA and bank details. Then, register a nominee and complete the payment.

Step 5: Make the Payment
The final step is to complete the payment, You can pay through a bank cheque or online mode. After payment, you will receive an account statement known as the Consolidated Account Statement (CAS).

MF investments are widely available and may offer better growth when invested for longer periods. If you have a need for funds during this time, you can pledge your investment to apply for a Fibe Loan Against Mutual Funds. This is one of the quickest ways to access funds without liquidating your investment. Apply now, and you can get up to ₹10 lakhs within the next few minutes!

FAQs on Steps to Apply for Mutual Funds

Where should beginners invest in mutual funds?

If you are new and want to learn to invest in mutual funds, you can start with options like ELSS. These funds save taxes and enable you to earn higher returns. Balanced funds are also a good choice as they help reduce risk while offering decent growth.

How can I add nominees to my mutual funds online?

Follow these steps to add your nominee to your fund scheme online:

• Log in to your demat account
• Go to ‘Manage My Account’
• Select ‘Add Nominee’
• Fill out the mandated details
• Review the information
• Submit the application

Is a Demat account necessary for investing in mutual funds?

A Demat account is one among several popular ways to invest in mutual funds. While it is not a mandatory option, it does offer benefits like easy management and a single platform for all your investments. 

How can I check the status of my mutual fund using the folio number?

You can use many ways to check your mutual funds status. These options are:

• Online account
• Consolidate account statement
• AMC website
• Mobile app

What is the process to check the status of a mutual fund?

You can go for any of the following processes to check your mutual fund status: 

Contact your MF broker to know the status

Visit your AMC website and access details like transaction history, fund balance, etc.

Find the customer care number of your AMC and share your details to know the status