How to choose an app to invest in a mutual fund?

September 27, 2022September 27, 2022 Sam 0 Comments

Introduction

How to choose an app to invest in a mutual fund:- Many people, including millennials or billionaires, are realizing the importance of investing as an alternative source of income and it’s a great investment for the future. Among the options are mutual funds. Thanks to its advantages of risk diversification, liquidity, stable returns, and affordability, the mutual fund is a popular investment choice for both new and experienced investors. In addition, investors have the option to invest online and offline. In the following parts, we will discuss how to invest in mutual funds.

Investing in mutual funds: How does it work?

A mutual fund pools money from different investors and invests it in different financial instruments with different returns and risks. Financial instruments are selected based on the fund’s objective. The goal may be to create long-term wealth or to create short-term liquidity. Beginners and people with limited knowledge can use the help of professional managers to manage their funds for a nominal fee. These are actively managed mutual funds, where a professional expert conducts research and selects the right funds. By downloading the mutual fund app, investors can get this expert help through their mobile devices as well.

How can you invest in mutual funds?

Apart from other benefits, mutual funds are very convenient and easy to invest in. Investors simply need to register with the management company. After that, they have to fill out the KYC (Know Your Customer) registration form and submit it along with the necessary documents. These documents include Aadhaar cards, PAN cards, and address proofs which need to be manually verified. An investor can either fill out the application form in person at the AMC office or fill out the e-KYC and other details like bank details online.

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What should all investors consider before choosing a mutual fund app?

User friendly:

An investment application must be designed in such a way that investors, including beginners, can easily navigate it. It should be simple and clear. To be useful, it must be able to track current financial reports, and annual return on investment and allow investors to invest comfortably.

Security and safety features

The primary concern of every investor when investing through a mobile application is security. If their phone is lost, they don’t want their personal information to fall into the wrong hands. As such, a mutual fund app must have some form of authentication, such as a PIN, face scanner, or login pattern.

Customer service

The backbone of an investment company is its investors. A successful mutual fund company can provide investors with an efficient customer portal to address their queries and concerns. From the moment the mutual fund team sends a doubt/query/complaint to their address, the entire process should be quick and hassle-free. Since mutual fund companies invest in international stocks, there must be a 24/7 customer service option.

Personalized interface

Investors’ risk and return requirements vary according to their goals. Therefore, a mutual fund app that analyzes an investor’s profile and suggests categories based on their financial assessment and risk analysis will be a real boon for investors. Categories can be anything from safe fixed deposits to higher-risk stocks. Some apps may even offer the option to invest in digital gold.

Additional services

Investors must also look at the other benefits that a mutual fund app can offer. Some apps come with built-in refund calculators, bill payment reminders, expense managers, or one-tap payment features. Investors can also check if the app supports other investments such as cryptocurrencies and IPOs. Apps can even allow families to manage all family investment accounts in one place. If investors need help, they can check for online financial advisors.

FAQ: How to choose an app to invest in a mutual fund?

Which app is better for mutual funds?

Here is a list of 4 Best Mutual Fund Apps in India – Best Mutual Fund Apps in India

No. Mutual fund Apps Rating

1 Coin App by Zerodha 5/5

2 Paytm Money App 5/5

3 Grow App 5/5

4 ET Money app 4.8/5

Is it safe to invest in mutual funds through apps?

Yes, it is safe to invest in mutual funds. This is because the investor’s money cannot stay with these entities, nor can they keep it with themselves

How can I invest in mutual funds without a broker?

You can invest in the Direct Plan online through respective mutual fund websites or through online platforms of stock exchange or Mutual Funds Utility (MFU) or other various digital channels. There are also several online portals that offer the option of investing in direct plans.

is an online investment in mutual funds safe?

So in one word – YES, investing in Mutual Funds online is safe. The ownership of the units is transferred to you and the credit/debit fund transactions are done directly from your bank account.

How can I get the maximum return from a mutual fund?

You can invest in mutual funds to achieve your short-term as well as long-term goals. For short-term goals, you should invest in debt schemes and bank deposits. You can invest in equity mutual funds to achieve your long-term goals and it’s a great way to invest in a mutual fund. However, you should always choose schemes based on your horizon and risk profile.

Conclusion

In this article we discuss about How to choose an app to invest in a mutual fund? Additionally, investors can view customer reviews and company performance history before using their app. Additionally, this will provide an overview of all consistent technical defaults in the application.

Investors can now easily verify their transactions using MFCentral, a new online portal. If these mutual fund apps fail to invest the investor’s money on a particular day, they are required to return the money back to the investor’s account by the evening of the same day. Hence, investing through a mutual fund app is safe.