Best way to invest in Mutual Funds

Best way to invest in Mutual Funds

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Introduction

What is the best way to invest in Mutual Funds for beginners, NRI’s, business class and veteran investors? BSE STAR MF is the undisputed answer. Further in the article we will discover how?

In line with the above and readers perspective, this article will serve purpose to answering following questions: 

  • What is the right way to invest in Mutual Funds?
  • How to start investing in Mutual Funds?
  • What are the steps required to invest in Mutual Funds?
  • How can BSE STAR MF add value to my business?
  • I am old Mutual Fund Investor. How can BSE STAR MF benefit me?
  • What is the relevance of BSE STAR MF to investing in Mutual Fund?

In the event you are exploring answers to the above questions, then you are at the right place. 

Overview: BSE STAR MF

The term BSE STAR MF sounds unheard and fills mind with curiosity. So, what is BSE STAR MF, its relevance and significance in the Mutual Fund space. Well, we will discover more on BSE STAR MF as we proceed further in the article.

What is BSE STAR MF?

In simple words it is a digital platform where investors and AMC’s co-exist to trade in schemes. It offers investor the ease and convenience to create SIP’s, purchase or redeem units of any mutual fund schemes through its platform. Key highlights are: 

  • It processes 27 lakh mutual fund transactions per month and adds 2 lakh SIP’s every month.
  • Investors may find its similarity to stock exchange platforms such as BSE and NSE where investors trade stocks of listed companies. However, technically it is different.
  • It is owned by Bombay Stock Exchange (BSE) which is the first Stock Exchange in Asia
  • Further, to explore the origin of BSE STAR MF, click on Genesis of BSE STAR MF.

Relevance of Characteristic & related Benefits to Investor Profile

 The characteristics of BSE STAR MF offer numerous benefits to the investor community. These benefits are applicable to all the investors in equal measure. However, the degree of importance of each benefit may vary from investor to investor. This necessitates examining the characteristics and its related benefits  through the prism of respective investor profile. This method of examining benefits appear meaningful and requires less cognitive effort from reader’s perspective.

Contrary to above method, displaying buffet of benefits leave readers to their cognitive skills to comprehend the application of benefits. Hence, we deliberately abstained from doing so in this article.

Investor Classification

In continuance to the above, the characteristics and related benefits has to be looked at through the lens of respective investor profile. Hence, the classification of investor is essential and core to this article. In the endeavor to do so, we have classified  investors into 4 broad categories. They are  mainly (1) Beginners (2) Non Resident Indians (3) Business Class & (4) Veteran Investors

The rationale behind identification of investor profile is not circumstance but a deliberate action. We refrained from using socio-economic factors as classification since gender, income. education etc. holds no correlation to the benefits of the said platform. 

Table of contents

In light of the subject matter and title ‘The best way to invest in Mutual Funds”, we will reflect upon the significance of the said ”Mutual Fund Trading platform” in sequence as laid in the table of contents below.

13 reasons why BSE STAR MF is the best way to invest in Mutual Funds for beginners and starters

BSE STAR MF is the best way to invest in Mutual Funds for beginnersInvesting in Mutual Funds shall be a breeze for beginners and first time investors using BSE STAR MF services. To begin investing in Mutual Funds is simple, convenient and easy. Its a 2 step process. Step 1) Register with BSE STAR MF and Step 2) Start transacting on BSE STAR MF portal almost immediately. Its that easy.

To register with BSE STAR MF, CLICK HERE

So what makes BSE STAR MF more interesting besides being the best way to invest in Mutual Fund for beginners? Well, it can be demonstrated by highlighting BSE STAR MF characteristics in order of importance. These characteristics blended with Financial Helpdesk’s  digital approach adds icing to the cake. It helps add speed in eliminating bottlenecks in the face of investor on boarding, order execution and discrepancy resolution management.

(1) Online BSE STAR MF Registration

Registering for BSE STAR MF is a  simple 5-10 minutes job. To register click on Register me now. Enter the required information and submit the form. Upon submission of form, within 24-48 hrs login credentials are mailed to the investor on the mail Id provided in the form. Subsequently, investor can start transacting on BSE STAR MF portal.

(2) Single window to all Mutual Funds

BSE STAR MF introduces you to the world of Mutual Fund. Here, investor can purchase, redeem, create SIP’s of all listed Mutual Fund Schemes. Hence, investor does not need to open individual accounts with each Mutual Fund Company.

(3) Single Mandate Registration*

At BSE STAR MF, mandate registration is required only once. It is processed at the time of registration itself. It enables investors to create  SIP’s seamlessly across AMC’s without worrying about mandate registration. Hence, investor does not need fresh mandate registration with every AMC. 

*What is Mandate registration?

Many beginners may not be aware of what is a mandate registration. Hence, let us first understand what is mandate? Mandate is an instrument where the investor authorizes a party to debit funds from their account periodically. This instrument is signed by the investor and is registered. Hence, it is called Mandate Registration. The mandate can be cancelled by the investor at any given point of time.

In consequence to the mandate registration, the SIP amount gets debited from investor’s account at a particular frequency. This frequency could be: Weekly monthly, quarterly, half yearly, yearly or biannually.

(4) Demat Account not mandatory

Demat account is not mandatory to invest in Mutual Fund schemes through BSE STAR MF. Hence, beginners who don’t have demat account may also invest in Mutual Fund schemes.

Readers may have a valid question here: What if demat account is opened later, can that be added to their current BSE STAR MF account? Well , in that case the only alternative investor has is to apply for fresh BSE STAR MF registration. This time investor should select the option ‘Yes’ and mention the ”Demat Account Number” under the Demat section of the online form.

(5) No minimum Investment criteria:

Investors are not required to keep any minimum investment. Also, no charges are levied on maintaining zero investment.

(6) Start investing with as low as Rs.100/-

Investor can start their journey of Mutual Fund investment with amount as low as Rs.100/-. Please note: Minimum purchase amount for any scheme is purely the scheme specific feature. The minimum purchase limit of  schemes mostly are Rs,100/- or Rs.500/-.

(7) Self Managed: No dependence on brokers to execute orders

The characteristic of BSE STAR MF  enables and empowers investor to transact themselves ending the ages old dependency on brokers/advisors.

Dependency on brokers were usually on 2 accounts. Firstly to execute the purchase or redemption orders. Secondly to offer advice on investments. Both are redundant now for 2 reasons. Firstly, the investor can now create his/her order on their own directly on AMC portal or BSE STAR MF portal. Secondly, BSE members and MFD’s such as ”Financial Helpdesk” make available to its customers trusted and comprehensive analysis on Funds Performance periodically.

(8) Unrestricted View of Fund performance

This is a Financial Helpdesk feature. Financial Helpdesk offers unrestricted view of scheme performance under each fund sub-category. Hence, investors can compare schemes with respect to their performance and identify the top performing schemes to invest. To discover categories, sub-categories and corresponding schemes, click on Fund Performance.

This effectively reduces the dependence on advisors towards knowing the top performing schemes. We recommend to read the article ”Cherry-pick mutual fund schemes-5 Step Guide”. It may be useful in  making the right investment decision.

(9) 24/7 order placement

This characteristic of BSE STAR MF offers flexibility on timings of orders. Hence, investors can place orders for purchase or redemption at any time of the day not necessarily during the market hours. 

Having said that we wish to make readers aware of 2 things. Firstly, the orders placed before 2 pm on a working day, investors get the NAV of the same day. Secondly, the orders placed after 2 pm till 2 pm the following day, investors get the NAV of the next day.

(10) Option of Overnight Funds

Investors can invest in Overnight Funds through BSE STAR MF portal. Overnight funds are those schemes wherein investors can invest for a day and earn decent returns. 

So how does the dynamics of Overnight Funds really work out? It can be explained in 3 steps. 1) The order has to be created before 10 am to earn for that day. 2) The units get allotted based on previous day ‘s NAV. 3) The principal along with interest is remitted back to investors account the following day by 9 am.

(11) Option to invest in Sovereign Gold Bond (SGB)

Investors who have interest in Gold may consider the option of investing in SGBs. The investor can purchase it online through their BSE STAR MF account.

What are SGBs?

These are government securities denominated in grams of gold. It earns for the investor 2.5% interest annually. They are substitutes for holding physical gold. Investors have to pay the issue price in cash and the bonds will be redeemed in cash on maturity. … SGB is free from issues like making charges and purity in the case of gold in jewellery form. To learn more about Sovereign Gold Bond (SGB), Click here

To learn more about Gold as an investment option, read our article Gold as an asset class”

(12) Paperless Transaction

At BSE STAR MF the use of paper in any form such as ‘Application forms’ etc are non-existential. All the transactions are digital in nature be it a New Purchase, Redemption, SIP, Cancel SIP, STP & SWP. Hence, by virtue of digital transactions the likelihood of errors are nil.

(13) Video and text tutorials

Enriching Experience: The Best way to invest in Mutual Funds for NRI's

The characteristics and its associated benefits highlighted above for beginners shall be as much valuable to the NRI’s. However, in view of varied geographical locations of the segment, few aspects could be of tremendous value such as:

  1. Non dependency on brokers: The characteristic of BSE STAR MF  enables and empowers investor to transact themselves ending the ages old dependency on brokers/advisors.
  2. 24/7 order placement: NRI’s are situated in countries where times zones are ahead or behind the time zone of India. Hence, the convenience of 24/7 order placement assures investor of not loosing out on any particular day’s Net Asset Value (NAV).

Cash flow Augmentation: The Best way to invest in Mutual Funds for Businesses

BSE STAR MF is the best way to invest in Mutual Funds for business classBSE STAR MF could be quite handy for businesses that deal with high value cash transactions daily.

Generating positive cash flows is fundamental to the success and growth of any business/firm big or small irrespective. Technically, its the movement of money into and out of the firm, Hence, the period in between the money is in transit mode lying in firm’s current account. Could there be an efficient mechanism which can fructify this idle money? Here’s how:

(1) Monetize idle money

 Efficient cash flow management is not the resultant of any standalone practice. It is the aggregate effect of enforcing multiple best practices. Popular examples are 1) Cut cost 2) Leasing instead of buying 3) Cash in on assets and 4) line of credit etc. All such practices are solely aimed at augmenting the positive cash flow position in the books of account.

In line with the above, one aspect of cash flow management could be efficient deployment of idle funds. Deployment without compromising on liquidity. This idle fund could essentially be monetized by parking it in Overnight funds leveraging BSE STAR MF Platform. 

(2) Liquidity

Liquidity of assets is of paramount importance for any business. Investor can invest in Overnight Funds before 10 am on any working day. Subsequently, by default the principal along with return is remitted back into respective investor’s account the following day by 9 am. 

Overnight Funds act as a pebble in the stream of cash flows for any business/firm. It sets the ground to monetize the idle money without compromising on liquidity.

BSE STAR MF as a welcome change for Veteran Mutual Fund Investors

BSE STAR MF is the best way to invest in Mutual Funds for veteran investors

The introduction of Mutual Fund Trading Platform has  been a welcome change for veteran Mutual Fund Investors. The acceptance of BSE STAR MF as the best way to invest in Mutual Funds has been gradual but consistent. The prominence is gaining momentum more among investors who were on Regular Plan. Investors who were on Direct Plan are beginning to realize that MF trading Platform is the future.

To learn more about Direct Plan and Regular Plan, read our article Direct Plan vs Regular Plan: What is best? It will help gain meaningful insights on the subject matter.

Many old investors who have switched to BSE STAR MF heaved a sigh of big relief. The relief is on account of liberation. Its liberation from wasteful, unproductive and time consuming activities such as:

(1) Maintaining multiple accounts

The conventional method (Direct Plan) has serious shortcoming. It had reduced the investors status to nothing less than a physical repository of log in credentials. Log in credentials of as many AMC’s of which the investor is a customer.

(2) Painful Bulk Order Management

Under the conventional method (Direct Plan), investors have to Log in to multiple AMC’s portal to purchase , redeem or create SIP’s.

(3) Multiple Mandate Registration

Another dent in the conventional method (Direct Plan) is with respect to Mandate registration. Investor has to register for fresh mandate every time he/she creates a new SIP with new AMC.

(4) Discrepancy Resolution Management

There are 2 sets of investors under conventional mode (Direct Plan). One are those who transact digitally i.e online. Another set of investor follow a physical route. It involves application forms, physical signature etc. which heightens the likelihood of errors. Hence, digital platform such as BSE STAR MF mitigates such risk. Further, it spares investors from following with multiple AMC’s through electronic means or physical visits to resolve discrepancies. Mostly discrepancies pertain to purchase, redemption, debit or credit of funds etc.

Steps to register for BSE STAR MF

3 simple steps to start trading in Mutual Funds. Click on the respective links below to proceed for BSE STAR MF Registration.

  1. Submit  online ”Registration Form”

  2. Pay online ”One Time Registration Fee” ( In case not paid in Step 1 above)

  3. Upload KYC Documents ( In view of the pandemic situation, it has been made not mandatory)

Upon completing the above steps, the log-in credentials of BSE STAR MF portal shall be mailed to the applicant’s email ID within 48 business hours.

BSE STAR MF Log-in page
BSE STAR MF Log-in Page

Conclusion: Why BSE STAR MF is the best way to invest in Mutual Funds

Well, we have seen how BSE STAR MF has something unique for everyone. The efficacy of the platform on a scale of importance can be measured on following accounts:

  • Go Live in a jiffy: From online registration to creating 1st. order online happens within 24 hr time frame
  • Single key to operate all schemes: Investor can invest in schemes across all AMC’s
  • Seamless transactions: Create orders effortlessly such as New SIP’s, Cancel SIP’s, Bulk Purchase, Bulk Redemption, STP, and SWP
  • Creates Stress Free environment: Three reasons that make BSE STAR MF stress free. 1) No minimum investment required. 2) Start investing with as low as Rs.100/-. 3) Self Managed and hence no dependency on brokers
  • Flexibility of order placement: Investor can place orders 24/7
  • Multiple Investment options: Investors can invest in Overnight Funds and Sovereign Gold Bond Scheme at a click of a button

In view of the distinct advantages, BSE STAR MF warrants for the best tool to invest in Mutual Funds. Not to sound rhetorical but in literal sense, it can be a metaphor for : The best way to invest in Mutual Funds.

Recap of benefits for your quick reference

Why BSE STAR MF is the best way to invest in Mutual Funds

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