Table of Contents
WHAT IS MUTUAL FUND
A mutual fund is an investment vehicle that pools funds from investors and invests in equities, bonds, government securities, gold, and other assets. Companies that qualify to set up mutual funds, create Asset Management Company (AMCs) or Fund Houses, which pool in the money from different investors, and invest in different asset classes. These AMCs/Brokerage companies provides apps an an easy way for an investor to manage investments. In this blog, “Top Mutual Fund Apps In India”, we’ll discuss and review the best available apps providing facility to invest in mutual funds in India.
The people responsible to manage these mutual funds are known as fund managers. Fund managers invests the funds accumulated from investors in mutual funds into different financial asset classes such as stocks, bonds, and other assets, as per the fund’s investment objective. These AMCs charges a fee from the investor known as the expense ratio. These charges mainly utilized for the fund’s management.
Differentiating between Direct and Regular Mutual Funds
Mutual funds offer investors two primary avenues for investment: Direct and Regular plans. The distinction lies in how investors access and transact in these funds.
Direct Mutual Funds: Direct Mutual Funds involve a direct transaction between the investor and the mutual fund house, bypassing any intermediaries such as brokers or distributors. As a result, investors in direct plans typically enjoy lower expense ratios. The absence of a middleman means that the returns from direct mutual funds are usually higher compared to their regular counterparts.
Investors who are comfortable with conducting their own research and making investment decisions may find direct plans more cost-effective in the long run. In direct plans, investors only are responsible for their fund selection and monitoring without professional advice.
Regular Mutual Funds: Regular Mutual Funds involve a distribution channel, usually through brokers or financial advisors. These intermediaries assist investors in the fund selection process and provide ongoing advice and support. In return for these services, regular plans charge a higher expense ratio compared to direct plans. Investors who prefer guidance and assistance in managing their investments may opt for regular plans. The higher costs associated with these plans cover the fees paid to intermediaries for their services.
Investors should carefully assess their preferences, investment knowledge, and comfort level with managing their portfolios to determine whether direct or regular mutual funds align better with their financial goals and strategies.
WHY TO CHOOSE MUTUAL FUND
- Professional Management: Decisions were taken by experienced fund managers on behalf of mutual fund investors. These professionals analyze market trends, research potential investments, and actively manage the fund’s portfolio to optimize returns. Their expertise can be especially beneficial for beginners who may not have the time or knowledge to manage their investments actively.
- Accessibility: An individual doesn’t need a large sum of money to invest in mutual funds. In most of the cases, these mutual funds comes with relatively low minimum investment requirements, which makes them accessible for a wide range of investors. Through mutual fund one can invest in stock market with a low sum of money.
- Liquidity: Mutual fund are generally highly liquid investments. This means you can easily buy or sell your mutual fund units on any business day at the fund’s net asset value (NAV). This liquidity feature makes it convenient to access your money when you need it.
- Diversification: As a Wiseman said, “Don’t put all your eggs in one basket.” This proverb scenario fits perfectly in case of mutual fund. The most significant advantages of mutual funds is diversification. Diversifying your investments means spreading your money across various assets, reducing the risk associated with any single investment. Mutual funds do this automatically by investing in a range of securities, making them less vulnerable to market fluctuations.
- Inflation Beating Returns: Inflation is a factor that slowly degrades the valuation of money. Hence, when investing one should identify a way to invest their money into such an investment tool that can provide inflation beating return, so that your money should not reduce instead it should increase with time. When we consider to invest in such financial tools that can give Inflation beating returns, mutual fund can be an ideal choice.
ADVANTAGES OF INVESTING IN MUTUAL FUND USING AN APP
In the fast-paced world of finance, technology has revolutionized the way we manage our investments. One of the most accessible and convenient ways to invest in mutual funds today is through mobile apps. These platforms have democratized investing, making it easier for individuals to grow their wealth. In this blog, we’ll explore the advantages of investing in mutual funds using a dedicated app.
- Accessibility and Convenience: Mobile apps provide unparalleled accessibility, allowing investors to manage their mutual fund portfolios anytime, anywhere. Whether you’re commuting, waiting in line, or simply relaxing at home, the power to monitor and make investment decisions is at your fingertips. This convenience empowers investors to stay informed and make timely decisions, contributing to a more dynamic and responsive investment strategy.
- User-Friendly Interface: Mutual fund apps are designed with user experience in mind. Most apps feature intuitive interfaces that simplify the investment process. From account setup to fund selection and transaction execution, these apps guide users through each step seamlessly. This user-friendly approach makes mutual fund investing accessible to individuals with varying levels of financial literacy.
- Real-Time Tracking and Notifications: Staying informed about your investment’s performance is crucial. Mutual fund apps provide real-time tracking of your portfolio’s value, historical performance, and fund-specific details. Additionally, many apps offer customizable notifications, alerting investors to market trends, fund updates, and important financial news. This real-time information empowers investors to make well-informed decisions and adapt to changing market conditions.
- Cost-Effective Solutions: Traditional investment methods often involve hefty fees and commissions. Mutual fund apps, however, have disrupted this model by offering cost-effective solutions. Many platforms provide commission-free investing, low expense ratios, and reduced transaction costs. This cost-effectiveness allows investors to maximize their returns and retain a higher percentage of their profits.
- Diversification Made Easy: Diversifying your investment portfolio is a fundamental strategy for managing risk. Mutual fund apps make it easy for investors to achieve diversification by offering a wide range of funds across various asset classes, sectors, and geographic regions. With just a few taps on your smartphone, you can build a diversified portfolio tailored to your risk tolerance and financial goals.
- SIP (Systematic Investment Plan) Flexibility: Systematic Investment Plans (SIPs) are a popular investment strategy that allows investors to contribute a fixed amount regularly. Mutual fund apps facilitate SIPs, enabling investors to automate their investment contributions. This disciplined approach to investing helps inculcate a saving habit and harnesses the power of compounding for long-term wealth creation.
- Security Measures: Concerns about the security of financial transactions are valid. Mutual fund apps prioritize the security of user data and financial transactions. They implement robust encryption protocols and authentication measures to safeguard sensitive information, providing users with peace of mind while conducting financial transactions through the app.
- Quick and Paperless Transaction: Using apps, one can perform transactions quickly, whether one is buying or selling some mutual fund units. This flexibility can be beneficial when we are reacting to change in market conditions or we want to take advantage of a sort of investment opportunity. Mutual fund apps generally support transactions that go paperless, eliminating any requirement of physical paperwork. This makes investment easy with reducing any administrative burden and impact similar with traditional investment processes.
- Goal Based Investing: Some apps provide feature of Goal Based investing. For example, mutual fund investment App such as, “Kuvera” comes with a goal-based investment feature. Through app recommendations, it serves to various financial goals of investors such as wealth accumulation, tax saving, financial stability, etc.
- Transparency: Mutual fund apps come with Transparency. Staying informed about your investment’s performance is crucial. Mutual fund apps provide real-time tracking of your portfolio’s value, historical performance, and fund-specific details. Additionally, apps immediately declare any changes in the regulations or any changes done by a particular Mutual Fund/AMC to their costumers/subscribers.
THINGS TO CONSIDER WHEN CHOOSING AN APP
Investing in mutual funds has become increasingly popular as individuals seek to grow their wealth and achieve financial goals. With the rise of technology, mutual fund apps have emerged as convenient tools to facilitate investment. However, with numerous options available, choosing the best mutual fund app can be a daunting task. Below we’ll summarize, essential considerations when selecting a mutual fund app to ensure that your investment experience is seamless and beneficial.
- User Friendly Interface: A user-friendly interface is crucial for a positive investment experience. Look for an app that offers an intuitive design, easy navigation, and clear instructions. The app should provide a smooth onboarding process and ensure that even beginners can navigate through investment options without confusion.
- Security and Data Protection: Security is paramount when it comes to financial transactions. Ensure that the mutual fund app adheres to robust security measures, such as two-factor authentication and encryption protocols. Read reviews and check if the app has a solid reputation for safeguarding user data and transactions.
- Fund Variety and Options: The best mutual fund app should offer a diverse range of funds to cater to different investment preferences and risk appetites. Whether you’re interested in equity funds, debt funds, or hybrid funds, the app should provide a comprehensive selection to meet your financial goals.
- Performance Tracking and Analysis: Opt for an app that provides real-time tracking of your mutual fund investments. It should offer detailed insights into the performance of your portfolio, historical data, and analytical tools to help you make informed decisions. Regular updates and notifications can also enhance your monitoring capabilities.
- Transaction Ease: Evaluate the ease and efficiency of transactions within the app. A good mutual fund app should allow for seamless buying, selling, and switching of funds. Check for features like a simplified redemption process and quick fund settlement to ensure liquidity when needed.
- Costs and Fees: Different mutual fund apps may have varying fee structures. Consider the costs associated with transactions, account maintenance, and any other hidden charges. Look for transparency in fee disclosures to avoid unpleasant surprises that may impact your returns.
- Customer Support: Trustworthy customer support is essential, especially when anyone is dealing with financial matters. Choose an app that provides responsive and accessible customer support channels, such as live chat, email, or phone support. This ensures that you can seek assistance promptly if you encounter any issues.
- Educational Resources: For those new to mutual fund investing, educational resources within the app can be invaluable. Look for apps that provide tutorials, articles, and other educational materials to help you understand the basics of mutual funds and investment strategies.
- Regulatory Compliance: Ensure that the mutual fund app complies with the regulatory standards and guidelines set by financial authorities in your country. This adds an extra layer of security and ensures that the app operates within the legal framework.
- Reviews and Ratings: Lastly, read user reviews and ratings for the mutual fund app. Feedback from other investors can offer valuable insights into the app’s performance, reliability, and user satisfaction. Always pay attention to both positive as well as negative reviews to make an accurate/informed decision.
Below attached an informative video for comparitive review and the ease of understanding:
COMPARISON BETWEEN TOP MUTUAL FUND APPS (Comparison using different parameters)
As from the above section, it is clearly evident that it is always beneficial to invest in Direct Mutual Funds in comparison to Regular mutual Funds. Therefore, in this blog we will only focus on those Indian Mutual Fund Apps that provides option to invest in Direct Mutual Funds. Below listed are the best mutual fund apps in India along with a detailed comparison, that one can consider out for investing in direct SIP:
Coin By Zerodha
- Zerodha Coin:
Pros:
- Limitless free investments with zero commission charged on the investment.
- This app provides facility to buy different Mutual Funds directly across 40+ Asset Management Companies (AMC).
- Allows both types of investments (lump sum and SIP).
- Provides provision to increase or decrease subscriber’s SIP investment amount as per their need.
- Through one trading account Zerodha facilitates to invest in multiple securities.
- Provides Demat account in which all investments like stocks, mutual funds and bonds get held.
Cons:
- For mutual fund investments, Demat account with Zerodha is mandatory.
- Zerodha does not give mutual fund recommendations/research services. Hence, difficult for beginners to choose the fund.
- Zerodha has an early cut-off time (for buying and redemption of mutual funds).
- It does not provide feature of STP/SWP/Switching Mutual Fund facility.
- For return calculation it doesn’t provide Feature of XIRR.
Click here if you want to invest in Mutual Fund through Coin app by Zerodha.
Groww
- Groww:
Pros:
- Groww doesn’t charge any Account opening fee.
- No Demat AMC Charges.
- Instant account opening (paperless).
- Provides platform of Direct Mutual Funds that helps subscriber to earn an extra 1.5% returns.
- It provides an online option to invest in digital gold.
- SME Shares Trading is available.
Cons:
- No Call and Trade facility.
- It does not give stock tips, research reports/recommendations.
- It does not offer SME investment (Companies listed on BSE SME and NSE Emerge platform).
- Advanced order type like AMO, CO, BO and GTT not available.
- Trailing stop loss orders are not available.
- NRI Trading not permitted.
Click here if you want to invest in Mutual Funds through Groww app.
Upstox
- Upstox:
Pros:
- No charges for online account opening.
- Flat Rs 20 per trade brokerage (delivery, intraday and F&O).
- No software usage charges.
- Advance order types like CO, SL, AMO and GTT are available.
- Upstox Option Chain Tool helps to find Spot, Future prices, vertical comparison of rates, circuit levels, Open High Low Close and market depth.
- Upstox Mutual Fund Platform offers option to invest in 1000’s of Mutual Funds. Lump sum or SIP pattern of investing is available.
Cons:
- Upstox doesn’t offer unlimited monthly trading plans.
- Margin funding facility is not available for delivery trades.
- Upstox doesn’t offer stock tips/recommendations.
- Call-and-trade fee is Rs 20 per executed order.
- An additional Rs 20 per executed order is charged as Automatic settlement charges .
Click here if you want to invest in Mutual Funds through Upstox.
Angel One
- Angel One:
Pros:
- Brokerage services are available at very low brokerage fees.
- Stockbroker charges Rs 20 per order flat as fee across segments and exchanges. Provides Brokerage free equity delivery trades.
- Training are available for beginners.
- Collaterals are available in form of Margin trading facility and securities.
- It does not charge for fund transfers/NEFT.
- Only charge call & trade (others charge Rs 50) and Rs 20 for intraday square-off.
- They provide free tips/advisory for stocks and mutual funds.
Cons:
- Without notice margin funding is given to the customers. This creates confusion and customer paying more interest charges.
- Trading in SME share is not provided by Angel one.
- GTC/GTT order facility are not available.
- It doesn’t offer 3-in-1 account.
Click here if you want to invest in Mutual Funds through AngelOne.
PaytmMoney
- PaytmMoney:
Pros:
- Robust and simple trading platforms.
- Pricing model is simple having low trading charges. Charge flat Rs 20/trade as maximum brokerage across all segments.
- Instant digital account opening.
- Provides to invest in direct Mutual Funds that helps to earn an extra 1% returns.
- It provides option to invest online in Mutual Funds, Stocks, derivatives, digital gold and NPS.
- Online IPO application.
- Provides Investment Advisory Services for Mutual Fund.
- For Futures and Options (F&O) trading Margin funding facility is available.
- CO, BO, Basket Order and Advanced order types like GTC (Good Till Cancelled) are available.
Cons:
- Charges for Equity Delivery brokerage is applicable and not free like some popular brokers “Zerodha”.
- It does not offer NRI Trading Account.
- No unlimited monthly trading plans.
Click here if you want to invest in Mutual Funds through PaytmMoney.
Kuvera
- Kuvera:
Pros:
- Kuvera app provides Goal Based Investment.
- App provides platform with free money management.
- App gives Portfolio presentation with graphs and charts which is Easy to understand.
- It also provides to invest in digital gold.
- App comes with a nice customer support
Cons:
- As its feature rich, the interface can be tricky for some users.
- KYC process seems to be lengthy.
- Feature for Mutual fund comparison is not very efficient.
Click here if you want to invest in Mutual Funds through Kuvera.
ETMoney
- ETMoney:
Pros:
- App provides maximum features which make market experience memorable. There is no other app that offer these many features in one place.
- Single app provides IPOs, Mutual Fund, Updates on Stocks, NPS, Tax Saving, Commodities, Forex, and much more.
- It’s being managed by Times Group which is a 181 years old company. Connected to such a long term experience company clearly indicates, trust, reliability and faith. ETMoney serves as an excellet platform for investing in Mutual Funds and various other financial segments affiliated with Economic Times.
- Different calculators (Advanced calculations) are included for NPS, SIP, Loan EMIs, Margin Calculation, Financial Fitness Calculation, etc.
- Fast performance speed along with excellent user interface.
Cons:
- We cannot perform trading through these platforms.
- No live customer support.
Click here if you want to invest in Mutual Funds through ETMoney.
IndMoney
- IndMoney:
Pros:
- Single app giving multiple app options. It includes investments, credit cards, managing expenses, insurance plans and much more. All of it within one app.
- It also provides loans option. One can get loans through this app against assets such as property etc.
- IndMoney app permits to run a zero balance bank account.
- Through this app subscriber can invest in US stock market (without paying a transfer fee).
- Rates offered by this app for Fixed Deposit are highest in comparison to its competitors.
- Safety and security provided by the app is top notch. Further, SEBI support from backend also gives strength to company trustworthiness.
Cons:
- No in-house chatting platform which is a drawback for some user types.
- Premium version of app is average.
- Some users reported concern with its average customer support which leaves them sometimes unsatisfied.
Click here if you want to invest in Mutual Funds through IndMoney.
MFCentral
- MFCentral:
Pros:
- App provides a single integrated platform for investment in mutual fund.
- Comparatively easy to Invest and track in Mutual funds while using MF Central.
- It provides feature to download Mutual Fund Statement.
- Provides secure platform. Provides mandatory security question to answer during login.
- One can easily submit and track service requests. Also provides service dashboard facility.
Cons:
- Poor ratings for Performance and rating of mobile app performance.
- Under portfolio, invested value is not visible from Demat holding.
- App is observed taking time to load data in My Portfolio in some cases.
Click here if you want to invest in Mutual Funds through MF Central.
Below given a detailed comparitive table of above mentioned Mutual Fund Investment Apps for your reference:
FREQUENTLY ASKED QUESTIONS (FAQs)
- Out of SIP or lump sum in mutual funds, Which is better, ?
Those people who want to invest in mutual fund through a stagger way, SIP investment mode is ideal for them. This does not cause a financial burden. Those Investors having excess/extra cash can invest in mutual funds through lump sum mode. - How to know whether a mutual fund app is safe for usage?
One should perform some basic checks about mutual fund apps before short-listingfor investment. Further need to see that app must be registered with relevant regulators and has has AMFI ARN Code. - Is it required to link bank account details in mutual fund app?
Linking bank account is mandatory for initiating a mutual fund investment, However, one must check the investment app for authenticity before proceeding. - Which is the best and safest mutual fund investment app?
App must be SEBI registered and must have have a bank grade security. While investing in mutual funds, apps that have bank grade security are considered the safest. - Whether investments in Mutual Funds through an app is considered safe?
Yes, investment done in mutual funds by an app is completely safe. Since in current times of digitalization, everything is becoming paperless, similarly investments also. However, while selecting to invest in mutual funds, one must choose those with the maximum positive reviews providing and bank grade security. Further, app must be registered with SEBI. - Can investing in mutual funds make you rich?
Yes, as mutual funds provides a potential to give high returns in the long run. By investing in mutual funds, one can get the benefit of compounding and money cost averaging. In fact, for wealth accumulation mutual funds is a perfect financial tool, if invested for longer duration.
CONCLUSION
Investing in mutual funds using a mobile app is a modern and efficient approach that aligns with the dynamic lifestyle of today’s investors. The advantages, ranging from accessibility and user-friendly interfaces to real-time tracking and cost-effectiveness, make these apps invaluable tools for both seasoned investors and newcomers to the world of finance. As technology continues to evolve, embracing the convenience and innovation offered by mutual fund apps is a smart step toward achieving financial success.
Choosing the right mutual fund app is a pivotal decision for investors. This feature comparison sheds light on the diverse offerings of the top mutual fund apps in India. Whether you prioritize a user-friendly interface, security, fund variety, performance tracking, transaction ease, costs, customer support extensive investment options, or robust financial planning tools, there’s an app tailored to meet your needs. Before making a decision, it’s crucial to evaluate your investment goals and preferences to ensure that the chosen app aligns with your financial objectives. Remember to stay informed and regularly review your investment strategy to adapt to changing market conditions. Happy investing!
Good work. Keep it up
Thanks a lot for your support and kind words.
The informations are useful, If possible recommend the right mutual fund to invest and which App is most trustable.
Thanks a lot for your valuable feedback and appreciation. However, the views expressed in our blogs are just for information purpose and knowledge enhancement. Please consult a finacial advisor for understanding your risk apetite and related fund selection. Thank you.