Mutual Funds Investment: You can invest in mutual funds by paying cash, here is the complete process

Do you know that investing in mutual funds is not only possible online or through a bank, but some special people can also invest in cash. Yes, you can easily invest in mutual funds through cash as well. According to the rules, farmers, small traders or those who do not have a PAN or bank account can invest up to a maximum of ₹ 50,000 in cash in a year, so let’s understand about it in detail.

Investment in Mutual Funds: Investing in mutual funds is often liked by investors. But do you also think that mutual funds and SIP are only for those who are experts in the world of debit cards, UPI and net banking? But this is not so because even if you have cash, you can invest in it.

How to invest in cash

Yes, you can invest in mutual funds directly from the cash in your pocket. This is not a dream, but a rule made by the market regulator SEBI, whose sole purpose is to ensure that investments reach every corner of the country.

What does the rule say

This investment is clearly mentioned in the Prevention of Money Laundering Act, 2002. Also, SEBI has included it in its circular related to Anti Money Laundering (AML). Also, this rule is present in the guidelines and regulations related to AML. The good thing is that small traders and resident investors can also benefit from this option.

Who can invest

Let us tell you that even if you do not have a PAN card or a bank account, you can still invest in mutual funds. According to the rules, non-taxpaying individuals like farmers, small traders, laborers are allowed to invest through cash. Investors investing in cash can invest in mutual funds in cash up to a maximum of ₹ 50,000 in a financial year. This special facility is beneficial for those who are not yet connected to the formal banking system, but want to invest.

Understand the complete account

If you are thinking of investing in mutual funds with cash, then it is completely possible, but without PAN card and KYC, investing even a rupee is not possible. This process is completely offline. For this, you will have to go to the office of the mutual fund company or authorized agent. Fill the form there, give KYC details and deposit the cash. Then you will get units according to the NAV of that day on the amount deposited, do not forget to take a proper receipt for it.

The post Mutual Funds Investment: You can invest in mutual funds by paying cash, here is the complete process first appeared on informalnewz.

News