When we think of investing in the long term, then only one feasible way we can see that is mutual fund investment and it is particularly true for corporate professionals as we don’t have much time to spend on managing our portfolio. The easiest way to invest in mutual is online. Online mutual fund investment in India is not very old so mot many people are aware of it and Online mutual fund investment not only just an easy way It will give several benefits over the conventional way of mutual fund investment (Regular Mutual Fund).
Different Ways Of Investing In Online Mutual Fund:
Mutual Fund Investment Through AMC app:
All mutual funds AMC like SBI Mutual Fund, HDFC Mutual Fund, ABLS Mutual Fund, UTI Mutual Fund, Axis Mutual Fund having a dedicated app for mutual fund investment but you will be able to invest only in mutual fund plans available under that particular AMC. You must use a different AMC app to invest in multiple AMC plans. You have to do an online KYS process and you are good to go.
Mutual Fund Investment Through Mutual Fund Investment app:
Another way to use apps which are dedicated mutual fund investment app. There are several mutual fund app available like Zerodha Coin, ETMONEY Mutual Fund App, Groww- Mutual Funds App, PayTM Money Mutual Funds App. Using a dedicated mutual fund investment app is more convenient for a user because in one platform you can get mutual fund plans for all AMC.
Now we will see the benefits of using a dedicated mutual fund investment app over investing through AMC app:
- All mutual fund plans are available in one platform reduces complicacy.
- You can check your portfolio performance in a consolidated way it makes rebalancing easy.
- You can compare all mutual fund plans in a single app
Benefits of online mutual fund investment in India:
Mutual Fund Higher return:
You always get near about 1% higher return in all online mutual fund investment plan that is online. It is due to the reason that you are investing directly so no third party like a bank or mutual fund agents are involved in the process. AMCs not required to make any payment to the third party and that is .8% to 1%.
Now you are thinking about what difference that will make it is just 1%. I know you are looking for mutual fund investment and it is most of the time it is for the long term. If u make an investment of Rs 5000/month for 20 years and expected gain is 12% your estimated growth will be 49.96 lakh. With 13% estimated growth it will be 57.28 lakh and that is a difference well over 7 lakh. Now you think if you are investing for more years with some more amount what will be the difference. Check returns in the SIP calculator.
Tracking Mutual Fund Performance:
In online mutual fund investment, you can track real-time mutual fund performance. This will allow you to make an informed decision on your investment and portfolio management is easy. You can also compare mutual funds before investing.
Online Mutual Fund Investment More Convenient:
To start a mutual fund investment you must do an online KYC and that will take 2-3 days. You can change your SIP amount and date any time, you can pause your SIP for months. You can invest in a lump sum in the same mutual fund you are doing SIP. You can invest more when markets are down.
Online Mutual Fund app is it Safe?
Yes, it is safe. Apps like Zerodha Coin, ETMONEY, Groww- Mutual Funds, PayTM Money will not have your money with them they are just providing a platform. Your fund will be with AMC, so in respect of app your money is safe but that does not guarantee safety from the market or if something happens to your AMC. The same thing applicable to offline mutual funds.
What will happen if the mutual fund app closed its operation?
It will not impact your investment because all your investment is with AMC. You can see all your investment on the AMC website and app. You can redeem from their or you can continue your investment or you can directly go to the AMC office to redeem your investment. You have to use your folio no to loin to AMC site which you will receive in your email in a monthly statement sent by your AMC.
Is it possible to change from a regular mutual fund plan to direct mutual fund plan?
Yes, it is possible. You can change your plan and good thing is that no need to inform your bank or agent for that. You have to generate CAS then you have to forward it to the online mutual fund investment app and they will update your external investment portfolio and after that will get an option in the app to switch to a direct mutual fund plan.
Now online mutual fund investment in India is easy and safe.