There are certain points you need to bear in mind while making mutual fund investments online. Here, we have enlisted the top ten important points for online mutual fund investments.

You may also like to check more updates on Mutual Funds and how to hold mutual funds in demat

1. For online investments in mutual funds using a demat account, the most important pre-requisite is a fast speed internet connection. Most of the brokers and accounts offer real-time trading and investment advice. The real-time information will be affected if your internet connection is slow. Hence, if you want your investment decisions to be driven by the most up-to-date information, you ought to get a high-speed connection.
2. You should compare the account requirements of different brokers. Some brokers require a large initial deposit whereas some of them demand a meager amount to get a head start with investments in mutual funds as well as other investment options. 

The top thing a financial services company must build is a distribution network of agents/advisors. India's biggest service brand, LIC has built it's success on an army of agents and they have close to 14 lakh agents on roll.

So how do you respond to a Mutual Fund company which refuses to pay any commissions to distributors! Quantum Mutual Fund is India’s first and only direct-to-investor mutual fund. On their website they say that the fund does not believe in gathering tons of money, but believes in working for the investor. They have only 4 mutual fund schemes and a fund of funds apart from 2 exchange traded funds.

How does that benefit you?

A fund house that does not follow the distribution route, which means that more of your money is invested, giving you more returns.

If you are looking for a way to aggregate all your mutual funds of different companies into one common place there’s great news for you! Like shares, you can now convert your Mutual funds into an electronic format and have them stored in your Demat account. Once you convert these funds into the Demat format you can sell them either directly through your account like shares or through a depositary participant like you do currently.

One of the biggest advantages of this new development is that it enables a centralization of all the funds that you have invested in. Instead of 10 different statements for 10 different Mutual funds, you can now have a consolidated statement of your holdings.

Manshu at OneMint reviews ICICI Direct's Target Investment Plan and compares it with the SIPs of Mutual Funds.

Target Investment Plan (TIP) is similar to Systematic Investment Plan (SIP) as both are periodic (mostly monthly) regular investments but differ in the amount. The SIP is same amount every month, while in the TIP, the amount varies.

More updates on Mutual Funds available in India can be read here