A COMPLETE GUIDE TO CASHLESS INVESTING
Ditch the paperwork and embark on a faster, easier investment routine.
Ditch the paperwork and embark on a faster, easier investment routine
Demonetisation has made cash dispensable to an extent most of us did not anticipate. Thirty- year- old Ravin Rawat, who works at a Noida- based infrastructure company, does not remember the last time he dealt with cash. He has switched to debit card, mobile banking, and installed mobile payment wallets such as Paytm and MobiKwik. He is not alone. The data from RBI and VC Circle pegs mobile banking transactions at Rs 3.9 lakh crore in Q4 2016 – a fourfold increase from the same quarter last year. The usage of cards has doubled at merchant outlets during Q4 2016 as compared to Q4 last year.
Wouldn’t it be ideal if we could also invest our hard- earned money with just a few clicks as against getting caught up in arduous paperwork? Here are ways to go cashless and paperless when investing.
GETTING STARTED
All asset management companies ( AMCs), today, are promoting ‘ paperless’, ‘ presenceless’, ‘ online’, ‘ go green’ options on their homepages. Investing online is not new for these companies, but they are now making the process more convenient by allowing investors to purchase and sell without physically visiting them.
To start with online investing, an investor needs to be KYCcompliant, should have a bank account, mobile number and email address. KYC can be done online through Aadhaar card, using the registered mobile number, where verifi cation is done through a one- time password. You may either go to the AMC’s website or the mutual fund transfer agency CAMS’ website. SEBI has restricted e- KYC holders to invest a maximum of Rs 50,000 per mutual fund per fi nancial year. You will need to upload your signature image in case you wish to invest or redeem through paper- based request in future. Once you are KYC- verifi ed, you can start investing. Fill in the form online and invest funds through net banking or by using your debit/ credit card or UPI. Major AMCs do not even require you to log in; you can do so using the one- time password option.
MFS ON YOUR FINGER TIPS
AMCs are leveraging the increasing penetration of smartphones to make investing convenient. Reliance, Birla Sun Life and ICICI Prudential already have mobile applications which allow users to invest and redeem from their liquid funds 24X7. Liquid funds are suitable for very short- term goals. At the time of need or emergency, these apps allow you to redeem immediately or within a few minutes. What more? They earn you more than a savings bank account can.
Axis and UTI AMCs offer a comprehensive application allowing transactions in all their active schemes. Although DSP BlackRock does not have a mobile application yet, its website has a responsive design – it adapts to the device in use. Santosh Navlani, Senior VP, DSP BlackRock Mutual Fund, says, “Most retail investors do not invest daily or even weekly; they prefer the SIP route.