Investments in mutual funds are becoming simpler by the day. While the route of investment is familiar, new options for investors are being introduced. While these techniques make the job of an investor easier, those who are not familiar with it may find it tough to adjust to the overall situation. One such area is the mode of payment for investment in the mutual fund.
It is no longer essential for an investor to draw a cheque to invest in mutual funds. There are options available, and the manner of their use has to be understood. An investor can now use the Internet to transfer funds. Some mutual funds have started offering the facility whereby the investor can use net banking to fund the investment. In this process, the moment the investor clicks on the payment option, the fund is transferred as per his specification.
Another option that is likely to come in soon is the use of mobile phones to transfer money. There has been rapid increase in mobile phones usage and is witnessing intense development is the money payment section. In this method, specific software and a tie-up with the fund house enables the investor to make payment through his mobile phone. The money is drawn from the balance that the investor maintains. This offers convenient mode of payment to an investor.
Another option is the use of credit cards to pay for investments. Here the credit card is used and the amount is charged on the card for the investor. This does not require immediate payment and the investor will pay the amount when the credit card bill becomes due. The exact modalities will be known only when such a facility is offered.