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When it comes to investing in the stock market, it can be difficult for an individual to know which medium is best for them. Every other person is seeking the best ways to identify the best medium for investment in stock market and when it is considered for mutual markets than the individual take reference from their friends or more than that from their hired professionals.
If an individual wants to take entry into the investment market or he is already in the same zone, then he/she is required to observe the regular alerts from the market and to get those alerts, he has to refer to the professional again and again.
But with today’s advancement in technology, you don’t need any professional or friend to guide you through out your investment journey. You can invest on your own by taking help of some online platforms which provide all kinds of information regarding stocks and shares as well as related news updates so that you don’t need anyone else but yourself to invest successfully.
Which app is better for mutual funds
The stock market is a place where you can invest your money and grow it. But how do you choose which stocks to buy? Increasingly, individuals are turning to their friends for advice. But if you don’t have any friends who are invested in the stock market, or if you just want a second opinion on the investments you’re considering, then you might want to hire a professional financial advisor.
While it may seem expensive to pay someone else to make decisions for you, there are many advantages to hiring a professional advisor:
-They have access to more information than most people do—they can get information about companies that isn’t available online or through social media.
-They know what types of investments are best suited for your risk tolerance and goals.
-They have experience with different strategies and approaches so they can help guide you toward the right one for your situation.
WHAT IS A DIRECT PLAN?
One may invest in mutual funds DIRECTLY i.e., without involving or routing the investment through any distributor/agent in a ‘Direct Plan’.
OR one may choose to invest in mutual funds with the help of a Mutual Fund distributor/agent in what is termed as a ‘Regular Plan’.
‘Direct Plan’ and ‘Regular Plan’ are both part of the same mutual fund scheme, have the same / common portfolio and are managed by the same fund manager, but have different expense ratios (recurring expenses that is incurred by the mutual fund scheme).
Direct Plan has lower expense ratio than the Regular Plan, as there is no distributor/agent involved, and hence there is saving in terms of distribution cost/commissions paid out to the distributor/agent, which is added back to the returns of the scheme. Hence, a Direct Plan has a separate NAV, which is higher than the “Regular” Plan’s NAV.
In due course, the lower expense ratio of Direct Plan translates to higher returns on the investments which keeps compounding over the years. Thus, the investment in Direct Plan would be worth more over a period, in comparison to investment in Regular Plan of the same scheme. It should be however borne in mind that the difference between NAV of Direct Plan and Regular Plan tends to be marginal.
Direct Plans are for those who prefer to invest DIRECTLY in a mutual fund scheme without the help of any distributor/agent. Investing in a Direct Plan is like buying a product from the manufacturer directly, whereby the cost to customer would be lower. Except that, investing in a mutual fund scheme directly is not as simple as buying some item from a factory outlet, because choosing a mutual fund scheme requires adequate knowledge and awareness of the mutual fund product, especially the risks that are associated with the potential rewards. Choosing a Direct Plan means making your own decisions about fund/scheme selection (and the related execution work) which not everyone may be capable of.
In short, Direct Plan is suited for those who understand what kind of mutual funds are needed for different kinds of investment needs, are capable of researching these independently and able to identify/shortlist the funds to invest in, and then go through the process of actually investing without the help of an intermediary.
However, when the markets fall and investment values come under pressure, independent advice from a professional advisor can help one stay the course. Thus, Direct Plan makes sense only if you have adequate knowledge and capability to select good funds yourself; or, are willing to seek professional advice of a registered investment adviser for a fee.
While the Direct Plan makes sense for knowledgeable, Do-it-Yourself (DIY) investors, it may not be suited for all investors, especially new and inexperienced investors. So, if you are new and inexperienced investor or unsure in which scheme to invest and need guidance/assistance in investing, you may be better off seeking help of a mutual fund distributor and invest in Regular Plan.
HOW TO INVEST IN A DIRECT PLAN?
You could invest in a Direct Plan online through the websites of the respective mutual funds or via online platforms of stock exchanges platform or Mutual Funds Utility (MFU) or other various digital channel.
There are also a few online portals which offer a facility to invest in Direct Plans. However, such online portals are run by private firms that offer robo-advisory financial planning services, usually for a fee – which could be per year or per transaction.
Please also note that, not all online portals offer Direct Plans, even though one may invest in mutual fund schemes on such portals.
Many banks offer an option to invest in MF schemes on their Internet banking portal. Financial intermediaries, including banks are mutual fund distributors, and hence do not /cannot offer you Direct Plans on their web portals.
You may also invest in Direct Plan using a physical application form, which can be submitted at the investor service centre/branch of the concerned mutual fund or its registrar and transfer agent (RTA) along with the cheque or demand draft.
While filling up a mutual fund application form – whether online via the website of a mutual fund or in physical mode, please ensure that you tick / select the ‘Direct Plan’ box. If you are choosing the physical mode, it is advisable to strike out the box for distributor code on the top of the application form or write the word “Direct” in the box.
Best Apps To Invest In Mutual Funds
1. Coin by Zerodha
Zerodha is a well-known investment platform and probably the simplest app that can easily let you invest in mutual funds. In addition, the platform has a Coin application that is perfectly compatible if you already have a Zerodha account. So log in to your account on the app, and that’s it. You’re good to go.
With this app, you can create your SIP anytime. In addition, it also lets you modify the SIP whenever you need to change any information. You can view various financial schemes, ELSS funds, Tax filing instructions. The Coin By Zerodha app has a fined tuned User interface in terms of app features. It is easy to use; most importantly, you can easily navigate between financial schemes and understand them with the dedicated investment calculator. With these features on board, Coin by Zerodha might be the
Groww is another app that you can use for investment purposes. However, I would suggest you use it if you’re new to the mutual fund’s investment scheme. This easy to use app has minimalistic features that let you decide and do your financial planning without any hassle. It has a single dashboard that lets you track all the investments, annual returns etc. All you have to do to get yourself registered on the app is get an account verification via KYC, and you’re good to go.
In terms of security, the application has 128-bit SSL encryption that keeps all your financial details secure. This easy to use the app can be considered the best app to invest in mutual funds and start SIP.
3. Paytm Money Mutual Funds App
Paytm is a well-known app in the financial segment; we all are using this app regularly. Though the primary use of Paytm is for making payments to a vendor, it also comes with additional financial services that you can easily opt for. Just install the Paytm money app and get going. On the Paytm mone app, you’ll also get a 1 per cent higher return; in addition, you’ll also get various investment schemes and create your financial portfolio.
In addition, the app also doesn’t have any hidden charges in case you’re buying or selling mutual funds frequently. It takes only 30 minutes to create an account on the Paytm Money app and start your financial investment plan. Paytm ensures that you get quality service while you’re signing up for your account, and for that, the entire registration process is paperless. So, get on the Paytm money app and plan your financial planning well.
Kuvera is another awesome mutual fund investment application that you can use. It has a unique and simple user interface, and you can create an account on Kuvera in a few steps. You can create your financial portfolio, manage joint family accounts, and keep track of the investment. In addition, the app also has a simple yet informative dashboard where you can get all the information of policy, financial scheme and SIP. It also lets you set life goals and see if you’re o the right track. It also recommends you trending mutual funds that can benefit you in achieving your goal.
ETMoney is perhaps the best platform where you can invest your money. Developed by Times Internet and managed by the Economics times publication, the ETMoney app is an award-winning application that has various benefits. You can easily set up your account and create your financial portfolio.
The most exciting part about the app is its financial calculator, where you have to just set a goal, and the app will automatically suggest various mutual funds investment plans. It also has a very easy app integration method with various payment apps like GPay, PhonePe, Paytm, etc. The key feature of this app is the personalised section that will show you the best performing mutual funds to invest on the basis of the historical performance of the mutual fund scheme. It can be said that this is the best app to invest in mutual funds.
6. myCAMS Mutual Funds App
myCAMS is one of the more straightforward and lighter apps on this list. Due to its lightweight file size and minimalistic overall interface, everything is right there in front of you to make use of. So, instead of confusing you, myCAMS gets right to the point and makes investing in mutual funds easier for you.
Moreover, although it is not an extensively beautified app, it is feature-rich. There is the login via PIN and Pattern feature. Then, you can view your MF portfolio or open new folios. Additionally, you can easily set up your SIP, purchase, switch and do whatever you find convenient, seamlessly. Definitely had to enter our list of best apps to invest in mutual funds in India.