Know the complete and easy way to invest cash in mutual funds

New Delhi: Do you also think that bank account, checkbook or online payment is the only means to invest in mutual funds? If yes, this information is for you. Now you can easily invest in mutual funds by giving cash ie physical cash.

This facility has been started, especially for those who still feel comfortable in transacting more cash than digital banking. This is promoting financial inclusion in the country.

What is the rule of cash investment?
However, it has an important rule. According to the guidelines of SEBI and RBI (RBI), in a financial year, in a mutual fund company (AMC) Maximum Rs 50,000 Only cash can invest. This limit has been set to prevent illegal activities like money laundering.

Complete process of cash investing (Step-by-Step):

1. KYC is necessary: First of all, it is mandatory to complete your KYC (Know Your Customer). For this you should have a PAN card and Aadhaar card.

2. Go to the right place: You have to go directly to the office of the mutual fund company in which you want to invest. Apart from this, you can also visit registrar and transfer agent (RTA) such as CAMS or KFINTECH (KARVY).

   
   

3. Fill the application form: There you have to fill a physical application form, in which you have to pay your personal information, name of the scheme and the amount of investment (in cash).

4. Submit documents and cash: With the filled form, deposit a copy of your KYC documents and the cash amount of investment on the counter.

5. Don’t forget to take the receipt: After depositing the cash, do not forget to take a confirmed receipt from there. This is proof of your investment.

6. Allocation of units: After the money is deposited and the process is completed, the mutual fund company will allocate units equal to the amount invested in your folio, whose information you will get on SMS or email.

This process may look a bit old, but it connects thousands of people with the investment world who still rely more on cash. So if you also want to start your investment journey through cash, then it is a great and easy option.