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The Top Mutual Fund Apps in India: Find the Best Mutual Fund App for Your Investments
Let me begin with a fictional story. Riya, Soham, and Tara are friends and they just passed out of college and landed their first job.
Riya shifts a part of her salary into a savings account every month. The money is safe, but it grows at a pace slower than a snail’s race. Soham on the other hand locks his savings into fixed deposits. The returns are decent, but his money is imprisoned for a set period, inaccessible during sudden needs.
But Tara, on the other hand, decides to explore the world of mutual funds. She understands that mutual funds collect and pool money from a large number of investors and invest this money in stocks, bonds, or other assets. She likes the idea of having professionals manage her investments and the potential for higher returns.
Tara started small, investing a little every month in a mutual fund which she understood as SIP (Systematic Investment Plan) that matches her long-term financial goal of building a beautiful house. As time passes, she watches her money grow, outpacing both Riya’s savings and Soham’s fixed deposits. Even with an exceedingly small continuous investment every month, Riya was able to build the corpus she required.
This story of Riya, Soham, and Tara introduces us to the power of mutual funds. Like Tara, any student like you can start investing in a mutual fund with an amount as low as Rs.500 every month. But there are risks and you need to do your research based on your financial goals.
In this article, we will look into some of the best mutual fund apps for mutual fund investments and how to start investing as a student.
What are Mutual Funds?
Mutual funds are a type of investment in which individual investors pool their resources to purchase stocks, bonds, and other securities. This pooling provides access to a broader set of investment opportunities.
The beauty of mutual funds is their diversification; by holding a piece of the fund, investors may spread their investments over numerous assets, lowering total risk. It is like having a personal financial advisor without the high fees. Today, we have access to interest, and there are numerous excellent apps for mutual fund investments.
Importance of Investing with Mutual Fund Apps
Investing in mutual funds at an early age is recommended. It helps you save and allows your money to grow. Starting young provides you with an advantage of the power of compounding.
One of the best features of mutual funds is diversification, which reduces risk by distributing your money across multiple securities. What is more, professional fund managers manage your investment portfolio, so you need not worry.
Factors to Consider When Choosing a Mutual Fund App
When you’re on the lookout for the best mutual fund app, there are a few things you should keep in mind to make the best choice. First, the app should offer direct plans for mutual funds, which means lower expenses and better returns. It’s also essential that the app can track all your investments in one place, making it easy to manage and monitor your portfolio. Look for an app that aligns with your financial goals and provides access to various types of mutual funds.
Another key factor is the app’s features. Does it offer insights into your investments? Can you easily find funds that suit your needs? Additionally, ensure that the app is registered under SEBI and comes from a well-established and trustworthy broker. It’s worth checking if the app has reasonable fees and robust customer support, as these can make a big difference in your overall experience.
Lastly, don’t underestimate the importance of a user-friendly interface. An app that’s easy to navigate can make your investment journey smooth and stress-free, especially if you’re a beginner. Choosing the right app can set the foundation for a successful investment experience, so take the time to find one that ticks all the boxes for you.
Which are the Best Mutual Fund Apps for Investing?
Now, the question arises – how to invest in mutual funds? The answer is right at your fingertips. There are numerous apps available for mutual fund investments that make investing in mutual funds a breeze. Let us dive into some of the best mutual fund apps suitable for teenagers in India.
Groww
Groww, an online platform launched in April 2016, offers a variety of investing options, including equities, mutual funds, exchange-traded funds, and initial public offerings. With over 1.5 crore registered members, Groww simplifies investing by offering a straightforward, accessible, transparent, and paperless experience. It also provides goal-based investing and more than 5,000 mutual funds.
ETMONEY
ETMONEY is a complete wealth management platform with over 1.2 crore registered users, offering 0% commission on direct mutual funds, equities, and expertly crafted multi-asset portfolios. Paytm Money is another pioneer in low-cost, commission-free investing, providing tools to help investors manage their money.
Kuvera
Kuvera is India's first completely free platform for direct mutual funds, offering a variety of investment options and simplifying money management. The platform has been recognized as an Investment Advisor by the Securities and Exchange Board of India (SEBI).
Coin by Zerodha
Coin by Zerodha is India's largest direct mutual fund platform, offering 0% fee mutual funds, government bonds, corporate bonds, and gold bonds. Investing in zero-commission direct mutual funds can save up to 1% in commission fees.
myCAMS
myCAMS is an online platform that offers mutual fund investing, management, services, and statements. CAMS (Computer Age Management Services) developed this web-based tool, allowing investors to create a single login user ID via the CAMS website or mobile app. The interface makes it convenient and easy to manage your mutual fund portfolio.
Mutual Fund Investing Strategies
When I first started investing in mutual funds, I was overwhelmed by the choices. I didn’t know where to begin. But then I learned about SIPs—Systematic Investment Plans. They felt like the perfect starting point for someone like me, a beginner trying to make sense of the financial world. By investing small amounts regularly, I found myself gradually building wealth without worrying about the market’s ups and downs. It was a relief!
As I gained more confidence, I started exploring other strategies. I discovered that seasoned investors often look into sector rotation or diversify across different asset classes. It was exciting to think about all the possibilities. But no matter where you are on your investment journey, finding the best mutual fund app made all the difference. It’s like having a trusted friend guiding you, whether you’re just starting out or ready to dive deeper into the world of finance.
Direct Vs Regular Plans
When you’re starting your investment journey, understanding the difference between direct and regular plans in mutual funds is crucial. In a direct plan, you invest directly with the Asset Management Company (AMC), cutting out the middleman. This means you avoid any hidden charges or distributor commissions, allowing your investments to grow more efficiently.
On the other hand, regular plans involve a distributor who acts as an intermediary between you and the AMC. While this might seem convenient, it comes with extra costs that could eat into your returns over time. Choosing the best mutual fund app that offers direct plans can empower you to take control of your investments and maximize your gains.
Risk Management and Diversification
As you begin your investment journey, managing risk is key. It’s not just about choosing the right mutual funds; it’s about spreading your investments across different funds to protect yourself from market fluctuations. Diversification acts as your safety net, helping to balance the risks.
Using multiple apps can also give you a better perspective. By doing this, you can compare features, keep an eye on your investments, and make necessary changes when needed. Before you invest, always think about your financial goals, risk appetite, and how long you plan to invest. These best mutual fund apps will be your trusted partner, guiding you to make confident and secure decisions.
Difference between SIP and Lumpsum Investment
Let us imagine you are offered a huge pizza to understand the difference between two common types of investments in mutual funds. Now, you have two options.
Lumpsum Investment: You can finish the entire pizza at once. This is similar to making a lumpsum investment, in which you invest a substantial quantity of your money at once.
Systematic Investment Plan (SIP): You can also eat your pizza slice by slice with a break in between. This is similar to a systematic investment plan (SIP), in which you invest a fixed amount in a mutual fund regularly (usually monthly).
Now, let us understand the differences a bit deeper:
Risk: Eating the entire pizza at once may cause stomach pain. Similarly, investing a large money all at once (lumpsum) might be dangerous if market conditions are not favourable. On the other hand, SIPs distribute risk across time by allowing you to invest regularly regardless of market conditions just like eating slice after slice.
Investment Amount: A huge amount of money is required for lumpsum investments. However, for SIP, you can begin with a smaller quantity as low as Rs.500/month.
Timing: In case you invest in lumpsum, the timing of the market is extremely critical. However, under SIP, you do not need to time the market because your investment is spread over a period, and it can absorb all the difficulties of the market.
Both SIP and lumpsum are equally important and are suited for different sets of investors and their objectives. Before making any investing decisions, it is always recommended that you conduct extensive research or talk with a financial expert.
Safety and Security of Mutual Fund Apps
When you start investing through a mutual fund app, safety should be your top priority. The convenience is great, but it’s crucial to be cautious. Reputable apps prioritize security and transparency, following the strict regulations set by the Securities and Exchange Board of India (SEBI) to protect your investments.
However, even with these safeguards, it’s important to stay vigilant. Choose an app that not only offers the best features but also has a strong security track record. When you find the best mutual fund app, you can invest with confidence, knowing your money is safe and secure.
Who Should Invest via Mutual Fund Apps?
Mutual fund apps are a fantastic option for all kinds of investors. If you’re just starting out, apps like Zerodha Coin, Groww, ET Money, and Paytm Money can guide you with their user-friendly interfaces and simple investment processes. They make it easy to dip your toes into the world of mutual funds.
For those with more experience or a higher risk tolerance, you might want to explore apps like ET Money and HDFC Mutual Fund. These platforms offer advanced features and in-depth research tools to help you make more informed decisions. No matter where you are in your investing journey, finding the best mutual fund app will set you on the path to achieving your financial goals.
Frequently Asked Questions
Which app is best for mutual funds in fund app investing?
Finding the best mutual fund app often comes down to your needs. Apps like Zerodha Coin and Groww are great for beginners, while ET Money and HDFC Mutual Fund offer advanced tools for more experienced investors.
Is it necessary to link my bank account details to a mutual fund app?
Yes, linking your bank account is essential. It allows for seamless transactions, making investments and withdrawals straightforward.
How can I withdraw money from my mutual fund app?
To withdraw money, simply log into your app, go to your investments, and select the option to redeem or withdraw funds. Follow the prompts to complete the transaction.
How do I invest in mutual funds through an app?
Investing is easy. Choose your app, create an account, and browse through available mutual funds. Once you’ve selected a fund, enter the amount you wish to invest and confirm.
Can I withdraw my mutual funds without paying any penalties?
Typically, you can withdraw without penalties, especially if you’re redeeming after the minimum holding period. Always check the specific terms of your mutual fund for any applicable charges.
Additional Resources for Mutual Fund Investors
Starting your journey with mutual funds can be exciting and rewarding, especially with the right resources. Whether you’re new or seasoned, it’s crucial to understand the basics of mutual funds, including their types, taxation, and Net Asset Value (NAV). Apps like Smallcase make it easy to kick off your mutual fund and SIP journey with just a click.
Before you dive in, take the time to research thoroughly. Look into various apps to find the best mutual fund app for your needs. Check their terms and conditions carefully, paying close attention to fees, charges, and any potential penalties. This will help you avoid surprises and ensure a smooth investing experience.
Investing in mutual funds is a fantastic way to grow your wealth, but it starts with making informed decisions. Equip yourself with the right knowledge and tools, and you’ll be well on your way to making smart, confident investments.
Take your First Step
Investing in mutual funds is a terrific way to start saving, but with so many options available, it can be tough to know where to start. Fortunately, as discussed, some of the best mutual fund apps are just a few clicks away! Numerous investors have tried and evaluated these applications, and they are highly recommended due to their user-friendly style, smart design, and valuable features. An expert advice on mutual fund investing is “the sooner the better“. So, if you can invest at least Rs.500 every month, I strongly recommend starting with mutual funds. The top mutual fund applications are there in front of you. Do not wait any longer to start building your corpus.
Disclaimer: This blog post is for informational purposes only and should not be taken as financial advice. Always research or consult a financial advisor before making any investment decisions. The details mentioned are based on the information available on the respective website as of the time of this writing. Please visit the company websites or apps for the most accurate and up-to-date information.
