Thursday, August 07, 2008

Invest Online with AMCs Directly, NRI too ! ..SAVE Entry load 2.25%

With SEBI giving directions to AMCs for not charging Entry Load to Investors when they invest directly with AMCs. I have been thinking of doing this for long time but lacking some initiative to do the same !. Well with markets performing not so well for time being. I though it is the right time to try this with at least 1 AMC to see if this really works.

With my best guess I thought ICICI will be the best AMC to start with. With my experience I know that the ICICI is one of the pioneer's in implementing Online services for its customers.

This post is only about how to start investing with ICICI Pru AMC for Mutual Funds. Once I find out about others like Kotak, Birla..I would post about that too. btw till now I have found only ICICIPru, Kotak and Birla offering Online Investment facility. SBI does too, but their process is not 100% online!. Sundaram has tie-up with HDFC, Kotak Securities and ICICIDirect. So that means you need pay entry load of 2.25% !

Steps to start investing online(Purchase, Switch, Redeem) with ICICI Prudential AMC are :

  1. Goto https://www.icicipruamc.com/InvOnline/invest.asp
  2. If you already have a Folio with ICICIPru(Means you had bought Mutual Fund from ICICIPru directly using manual method earlier) then the process simple and can directly goto Step 3.But if you have invested in ICICIPru Fund using ICICIDirect, Citibank, HDFC etc ..because then in that case the Folio is sought of protected and only can be updated by those brokers.
  3. Click on Button "Existing Investor" and follow the form to Invest Online. Don't forget to select option "DIRECT" in the Form. ICICIPru AMC have tie-up's with most of the banks to transfer money using net banking.
  4. For Investor's who are first time investing in ICICIPru AMC. Goto website https://www.icicipruamc.com/InvOnline/invest.asp.
  5. Click on link "APPLY NOW"
  6. Click on button "First Time Investor"
  7. There are instructions on this page to follow. But for simplicity, as I have done this I will give the steps here - Assuming you are Investing in ICICI Prudential Index Fund !
    1. Download the Common Application Form
    2. Fill up the form carefully, specially the details of Fund, Cheque No, Bank Details, NRI Checkbox for NRIs etc
    3. Write a crossed cheque of Rs.5000/- in the favor of "ICICI Prudential Index Fund" This is the minimum first time investment amount for ICICI Prudential Index Fund.
    4. Take a blank cheque and cancel it. This is also an requirement for direct debit/credit for AMC. They need another cheque as a proof for MICR Code I guess.
    5. Make sure you correctly write the IFSC(Indian Financial System Code) Code (This is printed on the Cheque normally)- This is required for RBI money transfer process.
    6. Proof's to attach with application - Please go through the application form instructions.
      1. Attested PAN Card Copy - If you are submitting the Form personally at the AMC, then you can show the Original PAN Card. For NRIs this is not a option, so you need to send an attested PAN Card Copy or Self-Signed would also do.
      2. KYC Acknowledgment or Print out after verifying at CDSL Website
    7. Verify all the documents and send by courier/post to the AMCs office in the City where your bank branch is located. This is important as they don't accept outstation cheques.
    8. For NRIs, please make sure to use Registered Post. I used registered post from Singapore. It reached in 5 days to ICICIPru AMC.
    9. The day your form reaches ICICIPru AMC, the first transaction is recorded and you get a Statement of Account in email !
    10. Now you can create a ICICIPru Tracker Account to do Purchase/Switch/Redeem from ICICI AMC without any ENTRY LOAD :)
    11. Steps to create the ICICIPru Tracker Account :
      1. Goto ICICI PRUTRACKER Website
      2. Follow the Activation process by having your Folio Number from account statement and a secret question!
      3. IPIN is generated online and you can create a username/password with Prutracker.
    12. Now onwards you can invest in all ICICI MFs without any entry load :)
The entire process for me took 8 days. Right from sending the Form and activation of Online account.

I will try to find out more about other AMCs and will post the steps for that too.

Happy Investing!

1 comment:

nagaraju.tvv said...

That was a great post! and i bet u will be saving a lot of others money!