You'd think it would be convenient to buy, switch or redeem the unit trusts of a mutual fund via the Internet. But before you can enjoy such comfort, there's a lot of frustration in completing the online application in order to access this service.

If you don't have hefty assets, you can only dream that mutual fund companies will send sales staff to serve you at your door. They don't receive 40-per-cent commissions like life-insurance agents, so it would be costly to expend the same amount of effort as the life-insurance representatives only to get a few thousand baht of investment.

Right now, there are 18 mutual-fund companies in Thailand and at least three more will make an appearance in the industry soon.

Almost every firm has provided an online service, especially those supported by banks.

Going to a bank is very tiresome. Although many banks have improved their services, long queues and some unfriendly faces remain. Moreover, the lack of knowledge about mutual funds of some bank staff is so irritating that it makes you want to walk away.

Getting started

Before you can sit back and use a few clicks to do a mutual-fund transaction conveniently, you need to apply first.

You need to visit the website of the asset-management firm you want to use. Then fill out your information and print out your application. Your information may be wired to the firm's database but you do need to print out your application form and visit the firm's office or that of its partner banks to complete the process. Why? It's the Securities and Exchange Commission's requirement. Investors must show up in person at the office or bank the first time they begin to conduct unit-trust trading.

After the bank receives your application form, it will send your user name and password to you. Then you'll be able to order to buy, switch or redeem your units in just a few seconds.

The road is not strewn with roses

If your application goes through, you'll be fine. But if it's not, it will be so irritating that you'll want to call it quits. The notes and cautions here may or may not happen to any of you but this experience is real to me.

I tried to apply for Internet trading at eight asset-management firms. This is purely because I wanted to know how it worked. I'll start from the easiest one to the one that made me give up.

Ayudhya Fund Management (AYF): I visited a branch of Bank of Ayudhya and requested the application form. The bank officer met me in person and took my real signature. A couple of days later, AYF sent an online application form and the letter of consent to deduct the payment via the bank. I sent the application back via the post and a few days later, I was in business.

Thanachart Fund Management: I passed by a branch of Thanachart Bank and opened an account specifically for a mutual fund. I asked for the online application. The staff told me to complete it online first. A week later I dropped by another branch and asked if I could apply for online trading. The staff told me to go back to the branch I had opened an account with. Never mind, they were only 45 kilometres away from each other.

However, I finally got it done when I went to Thanachart's office. When compared to big players in the industry, Thanachart may have branches, but it's not enough. It sometimes offers to pay for the expense occurred when investors want to cross-pay from or to other banks when buying or redeeming the units. At the moment, Siam Commercial Bank and Bank of Ayudhya are the only two banks for which Thanachart will cover the cost.

Kasikorn Asset Management: I found the same problem when I went to Kasikornbank. The staff told me to apply online first, then bring the documents to apply at the bank. I went to another branch, which is located in a shopping centre. I was hoping this would make my life easier. I couldn't complete the subscription because the bank didn't have the application form. Its customer service department sent me the form via email later. I have to go to the bank to complete the transaction again. I just haven't done it yet.

SCB Asset Management: I went to a branch of SCB over a year ago. A staff member with a mouth full of food told me to apply online and I didn't even need to show up. I tried again at a branch located in a mall. Everything seemed to be fine. I filled out the form. The staff told me to wait for a couple of weeks to receive the bank's approval. A few weeks later, I received a call. It was neither about the user name nor the password. The staff told me that the branch could not complete the subscription for me as I already had an account.

Five years ago, my university applied for the online service for me and I didn't realise that. I never used it and forgot where the passbook was.

I asked the bank's staff what I should do. I was told to get back to the branch where I had the account. I had to bring my passbook and cancel the account where it originated. I gave up as the branch was not on my regular route.

These are my experiences with the bank-backed asset management firms. What about those that don't have banks supporting them?

Aberdeen Asset Management: It relies on four banks - Bangkok Bank, SCB, Kasikornbank and United Overseas Bank (Thai). But before you can do the online transaction, you must have an online account with one of these banks. Over two years have passed. I still have to go to a bank to deposit funds to Aberdeen's account.

I also applied on the Internet for MFC Asset Management, One Asset Management and TMB Asset Management, but I'm fed up with going to banks to set up a subscription.

I may be one in a million in having these negative experiences. Many may find it easy to get access. That would be great. If you can get through these processes and are able to access the online service, investment heaven will be in your hands in just a few clicks.

Piyarat Setthasiriphaiboon

The Nation