Online Investments: Click Your Way to Mutual Fund Investing

Article Written By: dspblackrock

After a series of regulatory changes initiated by SEBI, took the mutual fund industry by storm, things have started changing for the better. Ban of entry load, which affected distributor sentiments in a big way, had its devastating effect on the AUM of the industry in the month of August. But that is a story of the past for the industry which learnt to adapt to new rules of the changing game. This will pave the way for greater penetration of mutual funds among the masses which the industry had never seriously looked at.

Most of the mutual funds in India have been following more or less the same modus operandi of keeping the distributors happy. After all, the industry has been so heavily dependent on this channel to garner business. But with no entry load and margins tight, distributors do not have the incentive to push mutual funds vis-à-vis insurance products. With this change in the tide, the small retail investor has suddenly become important.

In the current scenario, offering online investment option to individual investors is the only way mutual funds can empower them to make their own investments. Offering online investment facility does not only help the retail investors to take charge of their investments, it also offers them convenience in terms of access to account statements, liquidity, and a dashboard of their portfolios on a real-time basis.

Today the net savvy retail investor is spending a lot of time online researching on the best funds, best schemes, performance of schemes, reading on the profiles of various fund managers and these are only positive indicators of an evolving financial literacy. Few months back, the mutual fund industry would have least anticipated this new awakening within its retail investor community. But nevertheless, the change has set in and it is only going to gather more momentum in the days to come.

Small investors are flocking to the financial online portals to gather information on various mutual fund schemes, do their research and finally narrow down their selection to the best performing funds. Many mutual funds are also leaving no stone unturned to ensure that they are visible and available to these investors in the online world.

Most of the big companies have been offering the facility to buy mutual funds online. But recently some of the others have joined suit and DSP BlackRock Mutual Fund is one of them which launched its online facility, in September 2010. These fund houses are also partnering with the financial portals to Promote their online capabilities. With these developments around, there is no doubt the retail investor is in for lot of action.

Making online investments is no more a favourite with the tech savvy upwardly mobile working class alone but has become a necessary tool for the conventional retail investor from smaller towns across India.

About the Author

DSP BlackRock Mutual Fund, ranked as the Best Equity Fund Manager in India, offering the facility for online investments.

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