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

How to choose an app to invest in a mutual fund

Introduction

Many people, including millennials, are realizing the importance of investing as an alternative source of income. Among the options are mutual funds. With its benefits of risk diversification, liquidity, stable returns, or its affordability, the mutual fund has been a popular investment choice with new and seasoned investors alike. Additionally, investors have the option of investing both online and offline. In the following sections, we will discuss how to invest in mutual funds. 

Mutual fund investment: How does it work?

A mutual fund pools money from different investors and invests it in various financial instruments with varying returns and risks. The financial instruments are chosen based on the fund’s objective. It may be the goal to create long-term wealth or to create short-term liquidity. Beginners and people with limited knowledge can take the help of professional managers at a nominal fee to manage their funds. These are actively managed mutual funds where a professional expert does the task of researching and selecting the right funds. By downloading a mutual fund app, investors can gain this professional assistance through their mobile devices as well.

How can you invest in mutual funds?

In addition to other benefits, mutual funds are very convenient and easy to invest in. Investors simply need to register with an asset management company. After that, they must complete the KYC (know your customer) registration form and submit it along with the necessary documents. These documents include Aadhaar cards, PAN cards, address proofs, which need to be self-attested. The investor can either fill out the application form in person at the AMC office or fill out an e-KYC and other details, such as bank details, online.

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

  • User-friendly
  • An investing app must be designed in such a way that investors, including beginners, can navigate through it easily. It should be simple and uncluttered. To be useful, it must be able to track current finance news, annualized investment returns and allow investors to invest conveniently.
  • Security and safety feature
  • Every investor’s primary concern when investing via a mobile app is security. If their phone is lost, they do not 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 code, face scanner, or pattern for login. 
  • Customer service
  • An investment company’s backbone is its investors. A successful mutual fund company can provide investors with an efficient customer portal to address their questions and concerns. From the time a doubt/enquiry/complaint is submitted to their address by the mutual fund team, the entire process should be fast and seamless. Since mutual fund companies invest in international stocks, there needs to be a 24/7 customer service option. 
  • Personalised interface
  • The risk and return requirements of investors vary according to their goals. Therefore, a mutual fund app that analyzes an investor’s profile and suggests categories based on his financial evaluation and risk analysis will truly benefit investors. The categories can be anything from safe fixed deposits to higher-risk stocks. Some apps may even give the option of investing in digital gold.
  • Additional services
  • Investors must also review the additional benefits that a mutual fund app can offer. Some apps come with built-in return calculators, bill payment reminders, expense managers, or one-tap payment functions. Investors can also check whether the app supports other investments, such as cryptocurrency and IPOs. Apps may even allow families to manage all family investment accounts in one place. If investors need assistance, they can check if there are online financial advisors. 

Final thoughts

After reading the above article, you will have a better idea of what to look for when choosing a mutual fund app. Additionally, investors can check out the company’s customer reviews and performance history before using their app. Moreover, this will give an overview of any consistent technical defaults in the app.  

Investors can now verify their transactions easily with MFCentral, a new online portal. If these mutual fund apps fail to invest the investor’s money on a certain day, they are obligated to refund back the money to the investor’s account by the evening of the same day. Therefore, investing through a mutual fund app is safe and secure.  

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