Like all other financial functionalities, mobile apps have been developed for investments as well. In India, several apps have been launched that allow investors to manage their investments effortlessly. However, some of these applications are simply better than others. Therefore, you need to choose an app that best matches your needs.
Here are some points to be considered before choosing a money investment app.
- Direct or regular mutual fund plans
Every penny earned through investments is an added bonus. Investors look to reap the maximum returns when they invest a sum of money over 10 or 15 years. With direct mutual funds investment, the returns are significantly higher than the returns from regular mutual funds. For instance, an investment of Rs. 5 Lakhs, at a 15 percent compounding interest for 15 years will result in Rs. 60.75 Lakhs in returns when invested directly.
If the same money is invested in regular mutual funds, the return would be limited to just over Rs. 52 Lakhs. Therefore, you need to choose a mutual fund investment app that offers you the option to invest your money directly.
- A seamless sign-up procedure
Once you sign up for the app of your choice, you simply need to undergo a KYC verification. This can be done in a convenient manner and users need to enter the PAN ID in the webpage. Furthermore, if your PAN card is not KYC verified, you would need to verify it before you can start investing. The complete absence of paper and convoluted sign-up procedures, help newcomers sign up seamlessly.
- Keep an eye on the market
Mobile investment apps allow you to start investing money on your own, without the help of financial advisors. However, it is important to consider the risks involved before investing. Since newcomers often use such apps, there is a high possibility that investments made through these apps can lead to losses. Therefore, make sure you consult financial advisors before investing through apps if you want to reduce the risk profile of your investments.
- Investing on the go
The greatest benefit of money investment apps is that they allow investors to manage their investments on the go. Not only can they engage newer investments, but also keep an eye on their current investment portfolio. In fact, KYC verified users can invest money in under 10 minutes if they use any one of these apps.
- Incorrect or biased information
Investment apps are helpful, but newcomers are susceptible to exaggerated information. Incorrect suggestions may cause these novice investors to misread the market and invest money in unfavourable schemes. Similarly, an incorrect impression might be formed on the mind of the investor due to incomplete information. For instance, some apps only show the performance of a particular fund for the last 1 year, instead of giving a full graph of its performance for the last 5 to 10 years.
Therefore, there are positives and negatives to using a mobile investment app. You should exercise caution while using these applications so that you do not erode the value of your investment.
mutual fund investment app 