With the advancement of technology and innovations taking place every day, numerous mobile apps have been developed, making it easy for people to carry out varied tasks. So, when it comes to financial investment, there are already several mobile-ready applications that help investors perform financial transactions. Various apps let an investor compare different investment tools and arrive at a decision, considering the holistic view of various investment solutions. Since mutual funds are one of the preferred investment choices, investors use various mutual fund apps to compare the crucial features of products to fit their investment objective.

Pros of Mutual fund Apps

Mutual fund apps have simplified the way investors used to invest in these products. The reason behind the usefulness of the apps can be summarized in a few points:

Ease of Use: These apps let users create an account without much effort. Most of the investment apps are free to use, and anyone can sign up using basic credentials, even sign up through Google or social media accounts. Further, the apps come with simple filters and categorization options to make it convenient for the investor to gather useful information with a few clicks.

Performance Data: Another usefulness of these apps is the availability of the record of the performances of Mutual funds. This feature comes in handy for the investors when comparing between few options that already fit the desired criteria. 

Customer Service: Even though these apps are free to use, most of the apps provide customer service, which helps an investor address different queries relevant to the investment decision sorted at ease.

VAS: This is the age of value-added services. Besides acting as a platform to enable a customer to buy a mutual fund of his choice, these apps also provide different add-on services, like providing tax management advice on investments, stock insights, IPO information, and analysis.

These features of apps make it an apt choice to perform investments, with many beneficial offerings and the safety of your investment. There are many apps available for performing investments; the most important question that applies here is, which mutual fund investment app should an investor use?

Things to look for before choosing the best Mutual fund App for investing

Choice of investment app stands on three simple reasons:

Legality and Registered Investment Advisors:

They must be a registered mutual fund distributor (MFD) or registered investment advisor (RIA).  

These apps provide a direct plan with no hidden costs or charges associated with an investment. 

Direct Plan: Most mutual fund apps earn money through AMCs, as a commission. 

These apps let users create an account without much effort. So, while choosing the investment, an investor should ensure that the investment is direct towards the chosen fund.

Unbiased recommendations: Besides providing a platform to invest, the most important use of a mutual fund app is the recommendations provided by these apps. Choose an app that devices a system to analyze the portfolios and investment options with great customer reviews.

Diversify your mutual fund portfolio

You may diversify your mutual fund portfolio depending on investment objectives, age, time horizon and risk profile. You can diversify your portfolio with greater exposure towards equity mutual funds if you are a young investor. However, you may shift exposure from equity funds towards debt mutual funds as you near retirement.

You must invest in mutual funds across AMCs rather than pick mutual fund schemes of one mutual fund house. It helps diversify your investment across different investment styles. However, you may avoid investing in multiple mutual fund schemes as you may struggle to manage your portfolio.

You may consider avoiding identical equity mutual fund schemes as it may result in the same stock holdings. You could invest in equity funds with dissimilar stock holdings to prevent portfolio overlap and increase diversification and the risk-reward ratio.

Pick the right investment mode

You can put money in the direct plan of mutual funds to invest directly with the asset management company (AMC). However, you may choose to put money in the regular plan of mutual funds to invest through a mutual fund distributor or broker.

You will incur a lower expense ratio if you invest in a mutual fund’s direct plan compared to a regular plan. The AMC saves on commission paid to the mutual fund distributor and passes on the benefit to mutual funds investors.

You may invest in mutual funds through an online investment platform that simplifies the investment process and offers a discounted rate. Mutual funds offer you a facility called a systematic investment plan or SIP. It helps you put money regularly in a mutual fund scheme instead of investing a lump-sum amount. You can avoid timing the stock market if you invest in mutual funds through the SIP.

To sum it up

When it comes to managing investments, apps are truly fantastic. They provide many useful tools that provide recommendations, alerts, and much more to help investors manage their finances.  However, you may invest in equity funds if you want capital appreciation over some time. You can invest in equity mutual funds if you are an aggressive investor, and the investment matches your risk tolerance. However, a conservative investor may prefer putting money in debt funds as compared to equity funds.

These apps let users create an account without much effort. 

The core objective of this app is to simplify the journey of the customer in mutual funds. It is a one-touch login app that empowers you to invest across a host of mutual funds and provides a new way of investing your money. It also emphasizes on a single view of your investments, manage profile, make decisions and transact instantly without needing multiple apps offered by different fund houses.

 So, when it comes to financial investment, there are already several mobile-ready applications that help investors perform financial transactions.

Most mutual fund apps earn money through AMCs, as a commission. So, when it comes to financial investment, there are already several mobile-ready applications that help investors perform financial transactions. It can withstand sudden redemption pressure from major investors. You must check the investment style of the fund manager before putting money in a mutual fund. Check if the fund manager has a bias towards a particular investment style.

You may consider investing in debt funds to achieve medium-term financial goals, such as buying a car. However, you must invest in equity funds for long-term financial goals, such as buying a house or retirement planning.

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