Have You Filled Your Mutual Fund Form Yet?
Author: Nisha VarmaBefore making any mutual fund investment, the investor has to fill a form which clearly indicates his personal details such as name, address, number of units applied for and any other form of information which is required. Other details such as bank account number are also required so that there is no fraudulent encashment of any cheque/draft which has been issued by the mutual fund at a future date. Investors can either give physical forms (paper forms) for their financial and non-financial transactions directly to CAMS; for those mutual funds which are serviced by CAMS.
There are numerous forms for mutual fund transactions such as redemption forms, nomination form, STP form, SIP application form, declaration form, KYC form, etc.
An investor needs to firstly be compliant with the KYC (know your customer) norms before investing in mutual funds. After that he can then shortlist the mutual funds in which he/she would like to invest in. Once, this is done; the investor has to fill in a mutual fund form with a supporting cheque. This particular form will be submitted to the respective Mutual fund house or at CAMS/Karvy centres. Once the form is processed and the cheque encashed, a statement will be sent to your email address or posted to your house.
Investors have the option to do this investment option, either by themselves and depositing the forms to the respective mutual fund houses (DIRECT), or making use of the services of a financial advisor/distributor.
Mutual funds can be purchased either offline or online. Online purchases have three options where the investor can purchases mutual funds from online stock brokerage websites, online mutual fund distributors and a mutual fund's website.
To redeem means to buy back. It refers to the purchasing back of something that was previously sold. In order to redeem your mutual funds or buy them back, there is an easy method by which you can do so. All you have to do is fill an online or paper mutual fund redemption form which may be used for all mutual funds. CAMS acts as the Registrar and Transfer Agent. The form is easily available from the mutual funds AMC office. The mutual fund redemption form is very easy to fill; you only need to fill in details such as your name, folio number and the number of units you want to redeem. After this is given to the CAMS processing assistant your form will be put up for request.
SIP or Systematic Investment Plan is an investment mode (i.e. a means to invest in a mutual fund) by which you can invest in mutual funds through period and small installments. It enables investors to save their money regularly. Part of applying for SIP is filling in a SIP Enrolment Form as well as an application form. This form usually requires details such as folio number, frequency of SIP (monthly or quarterly), enrolment period (how long you want to remain invested) and mode of payment (cheque or auto debit facility).
Article Source: http://www.articlesbase.com/investing-articles/have-you-filled-your-mutual-fund-form-yet-6573911.html
About the AuthorNumerous mutual funds are available offline and online in the market. One of the crucial and key steps while applying for one is filling a mutual fund form. These forms may vary, depending on their purpose from KYC forms, redemption forms, declarations forms, SIP or STP application forms, etc.
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