How to buy a mutual fund
You need a PAN, KYC and a bank account. The purchase itself takes a few minutes.
Updated 1 Nov 2026 · 2 min read
What you need
- PAN, linked to your Aadhaar
- KYC done once with a KYC registration agency; how to complete KYC
- A bank account in your name, for paying and for receiving redemptions
- A mobile number and email of your own, used to confirm every transaction
Where to buy
- Through a mutual fund distributor or an investment adviser registered with AMFI or SEBI, who handles the paperwork and can help you choose.
- The fund house's own website or app. You open an account (a folio) with your PAN and buy any of its funds.
- [MF Central](/guides/mf-central), run by CAMS and KFintech under SEBI's direction. One login covers funds from almost every fund house.
- [MF Utilities](/guides/mf-utilities), a shared platform set up by the fund houses, where one account number works across most of them.
The steps
- Find the fund here and note its full name and fund house.
- Choose Invest for that scheme, then the plan and the option: Growth keeps the gains invested; IDCW pays some out from time to time.
- Choose a one-time amount or a SIP, and the amount.
- Pay by UPI or net banking. For a SIP, set up an automatic debit from your bank.
- You receive a confirmation by email and SMS, naming the scheme, plan and option, and the units are added at the NAV for that day.
Which NAV you get
If your money reaches the fund before the cut-off time on a business day (3 pm for most funds, 1:30 pm for liquid and overnight funds), you get that day's NAV. After the cut-off, you get the next business day's.
Questions
Do I need a demat account to buy a mutual fund?
No. Units bought through a distributor, from the fund house or on MF Central and MF Utilities are held with the fund's registrar in your name.
Is there a fee to buy a mutual fund?
A stamp duty of 0.005% of the amount applies to every purchase. The fund's yearly costs are in its expense ratio, shown on every fund page here.
Each fund page has its returns, risk, costs, managers and everything it holds.
This guide explains how things work. It is not investment, tax or legal advice. Rules change; check the fund house's documents, and a qualified adviser for your own case.