Online investments in mutual funds has picked up after the abolition of entry load by the Securities and Exchange Board of India (SEBI). With an online account, you can access your mutual funds online avoiding the need for multiple brokers, multiple bank accounts and multiple folios. There is also no need to call an agent and one of the biggest benefits of online investment is the complete privacy. You don't share your investment details with anyone.

You can register and buy mutual funds through broking companies offering online services - just like equity demat accounts. All you need is a one-time registration through the website, which may be free or levy a small transaction fee. You can switch between funds, discontinue a systematic investment plan ( SIP) at the click of a button, or even get a consolidated statement of all your holdings.

Mutual funds purchased will be credited to your demat account. You can also use your existing demat accounts to convert your existing mutual fund units to demat form. Just obtain the conversion request form from your depository participant, fill it, attach your statement of account and submit it to your depository who, after due verification, will sent it to the respective asset management company (AMC) or its registrar and transfer agent. The AMC will credit the mutual fund units to your demat account. If you want to redeem your mutual fund units, you can place an order through the stock exchange platform or submit the delivery instruction slip to your depository participant to transfer the mutual fund units.

A major advantage of the process is that you can decide where and how to invest your money. Online, you can do your own research, and invest with the click of a button. You can invest anytime, anyplace, anywhere.