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Before making any mutual fund investment, the investor has to fill a form which clearly mentions his/her personal details like name, address, number of units applied for and any other kind of information which is required. ostensibly indicates. Other details like bank account number are also required to avoid fraudulent encashment of any cheque/draft which may have been issued by the MF at a future date. Investors can either give physical form (paper form) of their financial and non-financial transactions directly to CAMS; For MFs that are serviced by CAMS.
There are various forms for MF transactions like redemption form, nomination form, STP form, SIP application form, declaration form, KYC form etc.
An investor has to follow KYC (Know Your Customer) norms before investing in Mutual Funds. He can then shortlist the MFs he wants to invest in. Once, it is done; The investor has to fill an MF form along with a supporting cheque. This special form will be submitted to the respective Mutual Fund House or CAMS/Karvy Centres. Once the form is processed and the check is cashed, a statement will be sent to your email address or posted to your home.
Investors have the option of undertaking this investment option, either on their own and submitting the form to the respective MF house (Direct), or using the services of a financial advisor/distributor.
Mutual funds can be bought both offline or online. There are three online buying options where investors can buy MFs from online stock brokerage websites, online mutual fund distributors and from the website of the MF.
To redeem means to buy back. It refers to the purchase of something that was previously sold. There is an easy way to redeem your mutual funds or buy them back. All you need to do is fill an online or paper mutual fund redemption form, which can be used for all MFs. CAMS acts as the registrar and transfer agent. Form MF is easily available from the AMC office. Filling the mutual fund redemption form is very easy; All you need to do is fill in details like your name, folio number and the number of units you want to redeem. Your form will then be placed for request after it is given to the CAMS Processing Assistant.
SIP or Systematic Investment Plan is an investment mode (i.e. a means of investing in MFs) by which you can invest in MFs over a period of time and through small installments. It enables investors to save their money on a regular basis. Part of applying for SIP is filling up an application form along with SIP enrollment form. This form usually requires details like folio number, frequency of SIP (monthly or quarterly), enrollment period (how long you want to stay invested) and mode of payment (cheque or auto debit facility).
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