Kolkata, October 17: Nowadays, most people prefer to invest in mutual funds through mutual fund investing apps because it is convenient and cost effective. We take a look at what you should consider before selecting the right mutual fund investing platform.
Look for a MF platform that lets you open an account quickly and efficiently through paperless KYC. This means that you do not have to spend much time with the paperwork before you start investing and you can open an account with ease.
Zero commission investing:
One of the benefits of these MF platforms is that you are not charged a commission on investments. “Choose a platform that allows you to invest in direct mutual funds for free. Direct mutual funds are commission-free and hence have the potential to fetch higher returns as compared to their regular counterparts,” says Harsh Jain, Co-founder and COO, Groww, a mutual fund investment platform. “Go for a platform that has a very transparent pricing policy and has no hidden charges,” he adds.
Jargon free and competitive UI:
A good MF platform will have an interface which is easy to use and also free of jargon. “A simple, aesthetically pleasing, intuitive UI makes investing easy. Assess the ease of investing on the platform. Try out a few platforms and see how frictionless the navigation process is,” says Jain. Check how easy it is to navigate the app and whether you find the process simple or complicated.
Good customer support: A good MF investment platform should have a solid customer support, both in-app and through call. “This customer support must also be extended post investment in the form of portfolio analysis, insights, etc. Any help or educational resources an investor might need to make a decision should be easily accessible,” says Jain. You can also check out the app rating on the play store/app store and shortlist the ones which are rated highly. Reading through comments and feedback from users will also help you arrive at a decision. It will also help you find out what are some of the strengths and weaknesses of a mutual fund investing platform.
Easy discovery of funds:
A good investment platform should cater to both beginners and experienced investors. You should be able to discover the best funds under each category. Features that help a first time investor to select funds should be present, plus there should be details of each fund like NAV, AUM, risk profile, etc, so that one can make informed investing decisions.
Transparency: “A transparent platform does not withhold any information from the user and allows them full control over their investments. Many investment platforms tend to hide negative investment actions like redemption of units or SIP cancellations and limit your options,” says Jain. He adds that a good platform allows you to take multiple actions with respect to your investments. A transparent platform will also display information on expense ratio, exit loads and tax implication on redemption, etc so that you can make the right decision.
Keep the above points in mind to choose a mutual fund investing platform. Happy investing!