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After deciding between an advisor/distributor or investing directly with the mutual fund, you are ready to make your first investment. At this juncture, each of these parties provides a few options to carry your <keyword id="6362476" type="ORGANIZATION" weightage="20" keywordseo="investments">investments</keyword>, which are: 
· Paper application form &amp; cheque 
· Online investment accounts. 
 
To avail either of these options from both parties, you should follow the steps mentioned below. 
 
Option 1: Paper application form &amp; Cheque 
This is the traditional way of investing and the most common one too. For this you need to get yourself a form. If you are investing via advisor/distributor, they will provide you with a form, however, if you are investing directly via the mutual fund, you can download one from the mutual fund company’s website. 
 
Filling up the form: Please ensure that you fill the form correctly. When doing so, do pay special attention to: 
<ul>
	<li>
		Bank details</li>
	<li>
		Nominee details</li>
	<li>
		Mobile number: You will get an SMS confirmation of the transaction. The best and fastest way.</li>
	<li>
		E-mail: the mutual fund company will send you transaction confirmation as well as statements to this address. It’s best to fill it up in all caps</li>
</ul> Please also note that an "<keyword id="35471" type="ORGANIZATION" weightage="20" keywordseo="SIP">SIP</keyword>" form is different from the "one time investment" form as the former also contains an ECS Mandate allowing the <keyword id="6358378" type="CITY" weightage="20" keywordseo="AMC">AMC</keyword> to debit your bank account every month. 
 
Payment: The form needs to be accompanied by a cheque for the amount of investment made. The cheque is made out in the name of the mutual fund scheme. In case of a SIP, you need to provide a cheque for the first investment in addition to the ECS mandate. 
 
Accompanying documents: The form needs to be accompanied by a copy of your PAN Card and a copy of the KYC acknowledgement. 
 
Submitting the form: Your advisor will usually collect the form from you and submit it to the mutual fund company. If you invest directly, you need to submit the form to the nearest office of the mutual fund company or their RTA. 
 
Confirmation: You will receive a confirmation when your investment is accepted by the mutual fund company. This will come in the form of an SMS to your mobile number and an E-mail. If you have not provided an E-mail address, you will get a statement by post. 
 
Option 2: Online Investment Accounts 
Online investment options are much simpler because a lot of your paperwork goes away. You need to submit your documents only once and all investing and withdrawal instructions can be placed online. 
 
Registering: You will need to complete a registration form and sign an investment agreement to open an account. This process may be done by you visiting the office of your distributor, an RM visiting you or online. Typically when you sign up online, a paper form incorporaing your details will be sent to you and you need to sign and send it in. 
 
Investing: To invest, you have to go to the website of your preferred agent/fund website/trading platform and open an account. Once your account is opened, you will be emailed/couriered pre-filled application forms based on the data you provided during account creation. 
 
Payment: Payments can be made through the following means. 
· ECS debit: The distributor will send your investment instruction to the bank and money will be transferred to the mutual fund company. This usually takes 3-4 working days. 
· Payment gateway: After you specify your investment account, the online portal of your distributor will direct you to your bank’s net banking gateway and you will need to authorise the fund transfer. Payment gateway investments usually happen on the same day. You cannot use a payment gateway for SIP investments. 
· Direct Bank Account debit: If your distributor is also a bank, then whenever you invest through the online route, your bank account gets debited directly. 
 
How to choose between Online &amp; Offline investing 
While both methods have their pros and cons, it’s better to invest online due to onetime &amp; minimal documentations processes and ease of tracking your investments. Online distributors will also give you additional benefits like single view of investments across all <keyword id="6357979" type="ORGANIZATION" weightage="20" keywordseo="mutual-funds">mutual funds</keyword>, portfolio tracking, <a href="https://scripbox.com/blog/rebalancing/">portfolio rebalancing</a> and more. 
 
(About the author: This article has been contributed by <keyword id="2135489" type="UNKNOWN" weightage="20" keywordseo="Sanjiv-Singhal">Sanjiv Singhal</keyword>, CEO, <a href="http://scripbox.com/" target="_blank">scripbox.com</a>.)

Your first Mutual Fund investment, de-jargoned

New Delhi, Dec 24 () Markets regulator Sebi on Tuesday came out with a framework for making investment in mutual funds in the name of minor through guardian and to ease the process for transmission of such schemes.
The move is aimed at bringing uniformity in such investment process across asset management companies (AMCs).
 The regulator said payment for investment by means of cheque, demand draft or any other mode will be accepted from the bank account of the minor or from a joint account of the minor with the guardian only.
 For existing folios or investor accounts, AMCs need to insist upon a change of pay-out bank mandate before redemption is processed.
 Upon the minor attaining the status of major, the minor in whose name the investment was made, shall be required to provide all the KYC details, updated bank account details including cancelled original cheque leaf of the new account. Further, no further transactions shall be allowed till the status of the minor is changed to major, the regulator noted.
 Sebi has asked AMCs to build a system control at the account set-up stage of Systematic Investment Plan (SIP) and Systematic Transfer Plan (STP) on the basis of which, the standing instruction is suspended when the minor attains majority, till the status is changed to major.
 In order to improve the processing turnaround time for transmission requests, Sebi said AMCs will have to implement image based processing wherever the claimant is a nominee or a joint holder in the investor folio.
Further, fund houses need to have a dedicated, central help desk and a webpage carrying relevant information and instructions in order to provide assistance on the transmission process.
 AMCs need to implement a common set of document requirements for transmission of units to claimant who are nominees or joint holders in the investor account. Also, they have to implement a uniform process for treatment of unclaimed funds to be transferred to the claimant including the unclaimed dividends.
 Besides, the regulator has asked AMCs and industry body Amfi (Association of Mutual Funds in India) to promote the importance of nomination as a part of its investor education and awareness programmes.
 To ensure uniformity across the industry, Sebi has asked Amfi to prescribe the form for a common set of document needed for transmission of units as well as uniform process for treatment of unclaimed funds within 30 days and all fund houses need to mandatorily follow the same. SP ANU
ANU

Sebi lays framework for mutual fund investment in minors' name

A large number of investors are investing in mutual funds to grow their money. As is the case with any investment instrument, your money can yield very high returns if you can plan strategically well backed by a thorough industry knowledge. You must also know that all mutual funds are not equally potential enough to assure a definite growth. Here are a few illustrations on the different kinds of mutual funds and how much you can earn from them. <keyword id="35247" type="PERSON" weightage="20" keywordseo="money-market">Money market</keyword> mutual funds which assure low returns Money market mutual funds are types of mutual funds designed to provide a high degree of liquidity to the investors rather than assuring high returns. We can say these are cash like investments that give you returns depending on the existing short-term interest rates that can fluctuate both upward and downward based on market scenario. Looking from a long term perspective, money market mutual funds produce an average returns between 3% and 4% per year. Over the recent years, money market mutual funds could hardly give any returns and they could produce close to zero percent earnings over the investments made. If you want to see mutual funds as a vehicle to grow your money, then you must stay away from investing in money market mutual funds that can hardly let you accomplish your goals. Bond mutual funds which assure moderate returns For the sake of boosting up the returns, a large number of investors invest in mutual funds that work by buying bonds. Bonds come with longer period of maturities than what the securities held by the money market mutual funds. Therefore, the companies issuing them are found to pay higher interest rates. One downside to this kind of mutual funds is the <keyword id="3002490" type="PERSON" weightage="20" keywordseo="Interest-rate-risk">interest rate risk</keyword> they carry. Hence when you invest in a bond fund, there are chances that your principal amount might suffer a loss. In the long run, bond mutual funds have assured average returns between 5% and 6%. A typical bond fund can match such a kind of performance. At the same time, future returns under the existing conditions could work out to be lower than the average due to the low rate environment that had existed for a long time. The upside potential of the bond mutual funds is rather limited in most cases. Stock <keyword id="6354820" type="DEFINITION" weightage="20" keywordseo="mutual-fund">mutual fund</keyword> which assure high returns If you look for the kind of mutual funds that assure the highest returns, then we must name stock mutual funds to fill in the blanks. Endowed with the potential to give the highest returns, stock mutual funds also carry greater risk. Over a period of time, majority of stock market funds have facilitated an average of 10% returns. Some higher risk funds connected to some riskier small company stocks have even given higher returns than that. It is possible that the stock market funds will rise and fall in the market. From time to time, we can expect some dramatic downturns. If you are willing to accept the risks associated with the stock mutual funds, then you can enjoy the rewards of very high average returns in the long run. Take home There is no end to how much money you can make by investing in mutual funds. They can help you achieve any big financial goal you might have in your life. it is not possible to get rich overnight by investing in mutual funds. At the same time, their potential to help you earn a lot can never be underestimated.

How much money can I make in mutual funds?

SBI Cards and Payment Services has raised Rs 2,769 crore from 74 anchor investors, ahead of its initial share sale starting on March 2. Anchor investors are institutional investors who are offered shares in an initial public offering (IPO) ahead of its opening. Singapore government, Monetary Authority of Singapore, HDFC Mutual Fund, Government Pension Fund Global and Birla Mutual Fund, are among the anchor investors. Shares have been allotted at the offer's upper price band of Rs 755 apiece, as per a regulatory filing. There are 12 mutual funds among the 74 anchor investors, who have been allocated 3,66,69,589 shares and its value stood at Rs 2,768.55 crore. The price band for the share sale -- which would be open from March 2 to 5 -- has been fixed at Rs 750-755 apiece. SBI Cards expects to raise around Rs 9,000 crore through the IPO. As per draft paper for the IPO, SBI Cards would offer up to 130,526,798 equity shares through an offer-for-sale route. This would include offloading of up to 37,293,371 shares by SBI and 93,233,427 scrips by Carlyle Group. In addition, the company would issue fresh equity shares worth Rs 500 crore. SBI holds 76 per cent in SBI Cards and the rest of the stake is held by Carlyle Group.

Singapore government, HDFC Mutual Fund, Birla Mutual Fund invest in SBI cards and payment services

<ul class="summary-list"><li>The <keyword id="6362470" type="ORGANIZATION" weightage="60" keywordseo="sec">SEC</keyword> has warned mutual fund investors of <keyword id="6354947" type="UNKNOWN" weightage="60" keywordseo="bitcoin">bitcoin</keyword>'s volatility, calling it "highly speculative."</li><li>Staff will assess whether the bitcoin futures market can accommodate ETFs, the regulator said.</li><li>Chairman Gary Gensler recently dampened hopes for <keyword id="2474430" type="PERSON" weightage="60" keywordseo="Bitcoin-ETF">bitcoin ETF</keyword> approval.</li></ul>The US Securities and Exchange Commission <a href="https://www.sec.gov/news/public-statement/staff-statement-investing-bitcoin-futures-market">on Tuesday</a> warned mutual fund investors of the risks attached to <a href="https://markets.businessinsider.com/currencies/btc-usd">bitcoin</a> futures.Calling it a "highly speculative" investment, the regulator said its investment management division will assess the impact of mutual-fund investments in bitcoin futures."As such, investors should consider the volatility of bitcoin and the bitcoin futures market, as well as the lack of regulation and potential for fraud or manipulation in the underlying bitcoin market," the SEC said in a statement.This warning follows new SEC chairman Gary Gensler dampening hopes for a bitcoin ETF after <a href="https://www.theblockcrypto.com/linked/104097/sec-gensler-crypto-exchanges-investor-protection">telling Congress</a> last week the crypto market "could benefit from greater investor protection." He also said <a href="https://markets.businessinsider.com/news/stocks/sec-gary-gensler-gamification-trading-apps-gamestop-new-rules-robinhood-2021-5-1030394910">new rules</a> could be required to tackle the gamification of trading popularized by apps like Robinhood.The SEC now says it will "consider whether, in light of the experience of <keyword id="6357979" type="UNKNOWN" weightage="60" keywordseo="mutual-funds">mutual funds</keyword> investing in the bitcoin futures market, the bitcoin futures market could accommodate ETFs."Most crypto advocates hoped Gensler's confirmation as SEC Chair would be good for <keyword id="2420795" type="PERSON" weightage="60" keywordseo="cryptocurrencies">cryptocurrencies</keyword>, but his new warnings and a <a href="https://www.sec.gov/news/press-release/2021-39">long regulatory to-do list</a> perhaps indicate the space isn't one of his first priorities. Staff will also look into the impact of potential fraud in the underlying bitcoin market and monitor funds' valuations of holdings.Bitcoin was last trading around 2% higher at $56,762 on Wednesday, and is up 95% year-t0-date."While the frenzy around Dogecoin may be subsiding, cryptocurrency <keyword id="31671" type="CITY" weightage="100" keywordseo="markets">markets</keyword> remain exuberant," said Paolo Ardoino, CTO at Bitfinex. "Bitcoin watchers will doubtless be entertained. The king of crypto is radiating green today, as it holds a beacon for new possibilities."

The SEC says bitcoin's volatility means it's a highly speculative asset - and hints it may not be suitable to back an ETF

<ul class="summary-list"><li>An <keyword id="162921" type="PERSON" weightage="60" keywordseo="expense-ratio">expense ratio</keyword> is a fixed fee mutual funds and exchange-traded funds (ETFs) charge investors to cover operating costs. </li><li>Actively managed mutual funds tend to charge higher expense ratios than passively managed ETFs.</li><li>While relatively small — typically ranging from .25% to 1% — expense ratios can significantly affect a fund's return, especially over time.</li></ul>Mutual funds and exchange-traded funds (ETFs) are valuable tools for long-term investment. They are managed by professionals whose main focus is building the value of the fund, helping you diversify your portfolio, and enabling you to buy into companies and securities that you may not have been able to on your own.As beneficial as it is to invest in these kinds of funds, here's the thing: They also cost money. Though both <a href="https://www.businessinsider.com/how-to-invest-in-mutual-funds-step-by-step-guide" target="_blank" rel="noopener">mutual funds</a> and <a href="https://www.businessinsider.com/personal-finance/what-is-an-etf-exchange-traded-fund" target="_blank" rel="noopener">ETFs</a> are considered low-cost investment products, you'll find a number of fees associated with managing a fund on your behalf. The main fee you should know before signing any paperwork? The expense ratio. Here is a closer look at the role of expense ratios and what you need to know when evaluating buying into a fund. <h2>What is an expense ratio?</h2>An expense ratio is a fee that covers the total cost of the annual operating expenses for investing in a mutual fund or an <keyword id="6357062" type="DEFINITION" weightage="60" keywordseo="ETF">ETF</keyword>. It is expressed as the percentage of your investment that goes back to the fund.You may also see these fees listed as "annual fund operating expenses." Expense ratio is an umbrella term that can include <a href="https://www.sec.gov/investor/alerts/ib_fees_expenses.pdf" target="_blank" rel="noopener">a number of different fees</a> that help keep the fund working for you, including:<ul><li>Portfolio management</li><li>Administrative and maintenance costs</li><li>Distribution or transfer of assets </li><li>Legal and accounting expenses</li></ul>While the expense ratio is the main fee you should know, it's not the only one. Expense ratios don't include transactional fees or costs related to sales, such as shareholder fees charged to buy or sell fund shares or to compensate brokers. They are strictly operational expenses. Expense ratios for ETFs tend to be lower than those for mutual funds. One reason for this is that many ETFs basically mimic the holdings of major indexes, which means they don't need as much attention by an investment professional. Many mutual funds also follow this approach, but others are more active in researching and investing assets. These funds use more time and resources and the expense ratio is usually higher as a result. <h2>How expense ratios are calculated</h2>Expense ratios are calculated as a percentage of average net assets that are being managed. <div type="image" title="The expense ratio equation" height="719" width="1667" msid="79377008" hostid="261"></div>For example, if you have $20,000 in a mutual fund that has an expense ratio of 0.5%, your operational fees would be $100 for every $20,000 invested. The amount would be deducted from your fund's assets. This may not seem like much to pay a financial professional to grow your investments. But when you're looking at maintaining a fund for decades, a few expense ratio points can translate into large differences in net assets. Consider this example. You have four mutual funds, each with $20,000 in assets and a different expense ratio: 0.25%, 0.50%, 0.75% and 1.0%. Assuming each earns a 5% annual return and no additional contributions are made to the funds, a 0.25% difference in expense ratios results in thousands more paid in operational fees, with a significant impact on the funds' growth. At the end of 20 years, each fund would be worth:<ul><li>Fund 1: $50,595.35 (.25% expense ratio)</li><li>Fund 2: $48,234.28 (.5% expense ratio)</li><li>Fund 3: $45,978.13 (.75% expense ratio)</li><li>Fund 4: $43,822.46 (1% expense ratio)</li></ul>Though expense ratios are a necessary evil of investing in managed funds, the percent charged varies from fund to fund. Investor demand has caused more competition among fund providers and has resulted in a <a href="https://www.morningstar.com/lp/annual-us-fund-fee-study" target="_blank" rel="noopener">20-year downward trend in average expense ratios</a> in the US. You can research different funds offered by investment companies, such as Vanguard or Fidelity, and comparison-shop funds that offer the most benefit for the lowest rates. Another option is working with a <a href="https://www.businessinsider.com/what-is-a-cfp-certified-financial-planner" target="_blank" rel="noopener">financial planner</a> or <a href="https://www.businessinsider.com/what-is-a-registered-investment-advisor-ria" target="_blank" rel="noopener">registered investment advisor</a> who can help guide you toward products that make sense for your goals. Some things to look out for include:<ul><li>How far is the expense ratio above or below the industry average?</li><li>How does the expense ratio dovetail with those of similar funds or fund families? </li><li>How much involvement will the portfolio manager have with investing the fund's assets? More involvement usually means higher fees. </li><li>What other services will the firm provide during the course of managing your fund?</li></ul><h2>What is a good expense ratio?</h2>Finding the national average for expense ratios is a good place to start when evaluating whether or not you're being charged a good rate. According to independent investment research firm Morningstar, the 2019 average asset-weighted expense ratio in the US was 0.45%. You should also take a fund's management approach into consideration. As discussed earlier, funds are managed either passively or actively, which results in different expectations for a good expense ratio: <ul><li>With passive management, the fund aims to keep pace with specific indexes, such as the S&amp;P 500. Trades and management of the portfolio don't require much time or attention, which is why they're considered passive and generally have lower expense ratios. The 2019 average for passive funds was 0.13%. </li><li>With a fund that is actively managed, the portfolio manager invests time and resources to find the best securities to deliver the desired return. Costs for this level of management are understandably more than with a passive management option. The 2019 average for active funds was 0.66%.</li></ul>These averages are a good yardstick to use when evaluating funds. However, you may find that many larger investment firms are able to provide rates markedly lower than the national average, says Daniel Patterson, a certified financial planner and owner of <a href="https://www.sweetgrassfp.com/" target="_blank" rel="noopener">Sweetgrass Financial Planning</a> in Mount Pleasant, SC. For example, Vanguard's average expense ratio is 0.10% and Fidelity is currently offering some passive index funds with 0% expense ratio. Patterson says this is possible because such firms have enormous resources that enable them to recoup expenses through avenues other than client fees. <h2>Where to find your fund's expense ratio</h2>Investment firms are required to provide a prospectus when you use their services to buy shares of a fund or other types of investment products. A prospectus is a document that discloses all of the fees and expenses, performance, risks, goals, and other vital information about a fund. This is the document that will show you the expense ratio for your fund. Firms are also required to provide shareholders with semi-annual and annual reports that show how their funds and investments are performing. There should be a listing of expenses charged and paid on these reports and a breakdown of how those numbers were calculated. <h2>The financial takeaway</h2>Every mutual fund has expenses associated with it and you will find an expense ratio for every kind of managed fund. The expense ratio consists of annual fees that are charged to pay for the operational expenses for your fund. This is usually a percentage of the annual net assets in the fund and is deducted directly from the fund's gross assets. You will get a report from your investment firm twice a year that discloses how much your fund has made and what expenses have been paid. Like many other financial products, funds are priced competitively. You may find large differences in fees and performance from fund to fund. But even a small difference in a fund's expense ratios can result in significantly more fees paid or saved over time.If you're not clear about what fees you'll be charged as a shareholder, always ask. In the end, take stock of what your investment goals are and choose the fund that makes the most sense for your situation and investing timeline.<h2>Related Coverage in <a href="https://www.businessinsider.com/investing-reference" target="_blank" rel="noopener">Investing</a>:</h2><h3><a href="https://www.businessinsider.com/rule-of-72" target="_blank" rel="noopener">The Rule of 72 is a quick, simple way to figure how long it'll take for your savings and investments to double in value</a></h3><h3><a href="https://www.businessinsider.com/what-is-compound-interest" target="_blank" rel="noopener">Understanding the way compound interest works is key to building wealth or avoiding crushing debt. Here's how to make it work for you</a></h3><h3><a href="https://www.businessinsider.com/what-is-an-index-fund" target="_blank" rel="noopener">What is an index fund? A low-cost, low-risk way to invest in the stock market</a></h3><h3><a href="https://www.businessinsider.com/passive-investing" target="_blank" rel="noopener">Passive investing is a long-term wealth-building strategy all investors should know — here's how it works</a></h3><h3><a href="https://www.businessinsider.com/what-is-diversification" target="_blank" rel="noopener">What is diversification? A portfolio strategy that uses a variety of investments to limit risk</a></h3>

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Your first Mutual Fund investment, de-jargoned

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Sebi lays framework for mutual fund investment in minors' name

PTI

How much money can I make in mutual funds?

BI India Bureau

Singapore government, HDFC Mutual Fund, Birla Mutual Fund invest in SBI cards and payment services

PTI

The SEC says bitcoin's volatility means it's a highly speculative asset - and hints it may not be suitable to back an ETF

Shalini Nagarajan

What is an expense ratio? The most important fee to know when investing in mutual funds or ETFs

Robin Kavanagh

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