Mutual Funds

Mutual funds are investment vehicles that pool money from investors. The money is then invested across a wide variety of assets like stocks, bonds, gold, etc. depending on the investment objective to earn returns.

How do mutual funds work?

  • A mutual fund is set up by the Sponsor or Promoter. An asset management company (AMC) is appointed to oversee and manage the fund’s portfolios.
  • An investor puts in money in a mutual fund scheme in exchange for units. Some fund units can be bought only during a New Fund Offering, while some can be bought any time.
  • This money collected from a pool of investors is then used to purchase stocks, bonds, money-market instruments, government securities, ETFs, gold and so on. The scheme’s prospectus will give a detailed idea about the kind of assets that will be purchased.
  • The AMC generally charges a small fee for managing the assets
  • The portfolio is managed by the AMC. The regularly buy and sell the assets. Any profits made would be distributed amongst the investors as dividends.
Why mutual funds?
  • Diversification
  • Expert guidance
  • Single transaction charge


What does Kotak Securities offer?

  • Purchase and redeem mutual funds online.
  • Track your mutual funds and get monthly updates.
  • Seamless link between your mutual fund scheme and bank account.
  • Systematic investment plan options. Know More. (it should open the SIP page).
  • No transaction charges or fees on the investment.
  • Receive SMS updates on the transactions.

How to Invest?

Login to www.kotaksecurities.com >Trading > Place order > Mutual Funds > Purchase

Call 30305757 to place an order through Call & Trade

What are the benefits?

Over the years, mutual funds have emerged as a highly popular investment option among investors in India and across the globe. Here’s why mutual funds are beneficial:

  • Diversification: Mutual funds give you access to a diversified portfolio. If you had to invest directly, you would have had to shell out a lot of money for diversification. In contrast, using a minor amount, you can have access to a portfolio with investments across mutliple stocks or bonds.
  • Professional management: As an investor, you conduct your own research before buying a stock or bond. However, there are so many options out there that it can become confusing. A mutual fund, however, allows you to save time and resources in this research. Experts in the asset management company will be investing on your behalf through a mutual fund.
  • Timing: In the stock market, timing is one of the most important factors. A mutual fund allows you to sit back and relax, and not worry about buying or selling at the right time.
  • Transaction cost: When you buy a stock or bond, you have to pay a small amount as fees every time. Imagine, if you were to buy a hundred assets to diversify your portfolio, you had to pay a charge for each of them. This is not so for a mutual fund. All you have to do is pay a small fee once.

Kotak Securities Academy

Want to know more about mutual funds? Check Kotak Securities Academy for more information.

+ Expand AllFrequently Asked Questions (FAQs)

  • QHow to place Purchase / Additional Purchase request?
    A

    Go to www.kotaksecurities.com > Mutual funds > Place order
    Select "Holding pattern-id"
    Select "AMC" name - you wish to invest in
    Select Scheme" name - you wish to invest in
    Select "Folio no" - you wish to invest in
    Click "Place order" button
    Enter the amount you wish invest in the scheme.
    in case of Dividend scheme, select Dividend option (payout / reinvest)
    Accept the Mutual funds Terms & Conditions
    An order acknowledgement page appears displaying order number. Please preserve the same for tracking the order status and the click Ok button
    For successful placement & processing please ensure the following:
    Sufficient funds balance in your Mutual Fund -ledger with kotaksecurities.com
    You should be KYC Compliant. - If not KYC compliant please get in touch with nearest POS and get you KYC details registered.
    PAN details displayed on Place Order page are correct - If it is incorrect, please get in touch with the nearest Kotak Securities branch and place the request for correction.

  • Q Where can I check the status of my online order?
    AYou can check the status of your online mutual funds order at www.kotaksecurities.com > Mutual Funds > check order status.
  • Q Where can I check the units allotted for the online investment order placed through www.kotaksecurities.com?
    AAllotment of mutual funds units are updated in Mutual funds Portfolio Tracker available in the Mutual funds section. Please note that allotment is subject to the confirmation feeds received from AMC or its registrar.
For more FAQs, click here