CAMSonline is a mutual fund transfer agent. It provides physical infrastructure separately, but not all, mutual funds to buy, sell, and transfer instructions. Transfer agents maintain physical branch offices where you can fill a form, pay a check/cash, and sell or transfer a mutual fund scheme.
CAMSonline allow you to purchase only some of the MF plans that they represent, others do not. For example, you cannot buy MF schemes of Franklin Templeton or UTI on CAMSonline. You must either visit their respective websites or on their transfer agent’s website (if it exists).
The advantage of CAMSonline, this service for MF houses, is that it provides a holistic view of investment by your PAN number. So, you can check your holdings in Blackrock DSP, Prudential ICICI, and others. There you can buy your mutual funds in icicidirect, hdfcsec / hdfcbank, scrip box, fund India and others. Not only this, but you can also transact on them i.e., make additional purchases, sell them or transfer them to other schemes.
Direct or Regular: Cams online allows you to do both
CAMS online, you can direct or regularize investments in mutual funds. Mutual funds are the best investment option. CAMS online is a platform of all mutual funds. You can choose the best plans and start through lump sums or start monthly SIPs in various mutual fund schemes.
CAMSonline is a purchasing platform, such as the MF website, or MF physical office. Both “regular” and “direct” versions are available for purchase. You need to select the “direct” version of the plan explicitly.
Cams online allows you to do both. So, choose based on your preference. Note: In regular plans, they do not receive any commission. They are not distributors. It is the registered distributor (agent/bank / online distribution company) on your folio who will get the commission.
Benefit of CAMSonline
CAMS online is a private business entity. They are registration and transfer agents (RTAs) and are engaged by mutual funds to provide points of service (POS), to process transactions, to keep records, to send mandatory reports to investors, etc., So it is paid for these services by the Mutual funds.
Their websites and mobile apps (such as cams online) are ways of providing value-added services for them to reach more investors without the cost of brick and mortar offices (POS), thus efficiency in their operations.
Note: If you are a KYC holder, then you can invest via CAMS online directly by going website or download their app.
If you are a first-time investor, I would advise you to invest through an advisor and not directly because you will not be able to find opportunities in the market. And the advisor will guide you through the entire process. There are many parameters like investment horizon, risk appetite, financial goals, which will be taken into consideration to decide an MF scheme for you. Asset allocation is essential.
Conclusion: Cams online are designated by SEBI (Which is a Govt body) to operate Mutual Fund services for investors.