How to invest in mutual funds using WhatsApp

Some service providers ask the investor to send a message to a designated mobile number to initiate the transaction.

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It is mandatory for the investor to have completed KYC formalities before using this facility.
Investment processes have become less cumbersome over the last few years with the introduction of initiatives like Aadhaar validation, common KYC, online investment platforms, online payments and the like. Now one can invest in mutual funds using Whatsapp. It is being offered by a few mutual fund houses and investment platforms.

1. Initiation
To initiate the process, the investor needs to visit the service provider’s website, enter mobile number and agree to terms and conditions. Some service providers ask the investor to send a message to a designated mobile number to initiate the transaction.


2. Conditions
The facility is available only for existing resident investors who want to invest in a single holding format (joint holding is not supported using this method). Politically exposed persons are also not allowed to invest using this facility.

3. KYC confirmation
Once the investor accepts the terms and conditions, a message is sent to him asking for the PAN for KYC verification. The PAN is checked by the service provider to confirm that the investor is KYC compliant.

4. Investment Details
The investor can make a lump sum investment or start a SIP. The investor has to indicate the scheme he plans to invest in, amount to be invested and the number of installments. Next, an order summary is generated, asking the investor to confirm or edit details.

5. Payment
On confirmation, an OTP is sent to the mobile number of the investor. The investor has to enter the OTP to receive a URN. The URN has to be registered with the bank to activate SIP transactions.

Point to note
  • It is mandatory for the investor to have completed KYC formalities before using this facility.

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(The content on this page is courtesy Centre for Investment Education and Learning (CIEL). Contributions by Girija Gadre, Arti Bhargava and Labdhi Mehta.)
(Disclaimer: The opinions expressed in this column are that of the writer. The facts and opinions expressed here do not reflect the views of www.economictimes.com.)
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