Investing in mutual funds is a trendy way to grow wealth long-term. Fortunately, several excellent mutual fund apps in India make tracking, managing, and investing in various mutual fund schemes faster and more convenient.
These apps allow you to perform all these activities within a single application, simplifying the investment process.
Whether you're considering investing in regular funds or direct mutual funds, numerous mobile apps on the Google Play Store offer the convenience of buying and selling mutual funds at your fingertips.
Additionally, if you opt for direct funds through these apps, they can assist you in saving an additional commission of 1% to 1.5%, which can translate into significant cost savings.
Direct vs. Regular Mutual Fund Plans: Since the beginning of 2013, SEBI has mandated that all Mutual Fund companies offer two versions of each scheme – Direct and Regular (or Indirect).
You can invest instantly in a Mutual Fund AMC's scheme at a lower cost in a Direct plan. Direct plans are more cost-effective than regular plans because you save on commissions paid to intermediaries. When you compare both plans, the variance in returns may be as low as 0.25%, or it can go up to 1%.
Over the long term, even these small differences can accumulate into significant amounts. Therefore, it's clear that investing in Direct plans of Mutual Funds is the better choice.
We have selected six of India's best mutual fund apps for direct investment from the hundreds of mutual fund investment apps available on the Google Play Store. Here is a list of the most capable mutual fund apps for Indian investors:
The Groww app is one of the fastest-growing applications in the Indian mutual fund industry, and its success is attributed to its clean user interface. This app facilitates commission-free investment in mutual funds and is incredibly user-friendly, with minimal paperwork and no hassles.
It provides all mutual fund information within a single investment app. Like the apps mentioned in this article, the Groww app enables everyone to invest in direct mutual funds without commission. It offers additional savings of up to 1.5%+ compared to regular plans.
Key features of the Groww app include:
The application has garnered over 10 million downloads and maintains a Google Play Store rating of 4.3 out of 5, totaling 350,672 ratings.
A group of spirited entrepreneurs, IITians, and designers with in-depth expertise in technology, mobile, and financial services founded ETMONEY. Associated with the renowned brand Economic Times, this Mutual Fund app is a comprehensive destination for all investment-related things.
It offers features like expense tracking through an expense manager, the ability to invest in mutual funds via SIP or lump sum, and tax-saving options with SIPs in ELSS mutual funds, among other functionalities.
Key statistics for the ETMONEY app include:
myCAMS serves as a unified platform for investing in multiple mutual fund schemes. This app streamlines the transaction process in direct funds, making it faster, easier, and more efficient.
Its notable features encompass mobile PIN and pattern login, providing a comprehensive view of your MF portfolio, opening new folios, purchasing, redeeming, switching, setting up SIPs, and more.
Additionally, it offers a transaction scheduling option, enabling investors to plan future mutual fund transactions, which contributes to its standing as one of the top mutual fund apps.
Key statistics for myCAMS include:
The primary aim of this app is to simplify the mutual fund investment journey for customers. It features a one-touch login, enabling users to invest in a large range of mutual funds in a user-friendly manner.
The app emphasizes providing a consolidated view of investments, managing user profiles, facilitating decision-making, and executing transactions swiftly, all within a single platform, eliminating the need for multiple apps offered by different fund houses.
Key features of this app include:
Key statistics for this app are as follows:
Zerodha Coin is one of the best applications for investing in direct mutual funds. They provide access to over 3,000 commission-free direct mutual funds from 34 different fund houses. This can result in substantial savings of up to 1-1.5% annually compared to regular mutual funds.
Zerodha Coin has already gained a strong reputation and a large customer base, with over 1,50,000 investors having invested more than 2,500 crores, collectively saving over 30 crores in commissions.
Key features of the app include:
Key statistics for this app are as follows:
Paytm Money, offered by the Paytm group, has emerged as one of India's most reliable investment platforms. It is known for providing higher returns of up to 1% through investments in Direct Plans of Mutual Funds Schemes.
What sets it apart is that it doesn't charge any commissions or fees on the purchase or sale of these direct mutual fund plans.
The app offers a range of valuable features for customers, including:
Key statistics for this app are as follows:
Yes, investing through mutual fund apps is safe because these apps implement various security measures and are regulated by SEBI (Securities and Exchange Board of India) to ensure the safety of investors' money.
The transaction processes are also designed to minimize the time intermediaries hold funds. If your money is not invested on a specific day, it is promptly refunded to you on the same day.
Generally, mutual fund apps adhere to SEBI guidelines, making them a secure and reliable investment.
Here are some of the best apps for investing in mutual funds in India: Groww, Coin by Zerodha, Paytm Money Mutual Fund App, ET Money Mutual Fund App, Sqrrl, Scripbox, Kuvera, and myCAMS Mutual Fund Application.
The withdrawal method from a mutual fund app depends on the particular app you are using. Generally, you must sell or redeem a certain number of mutual fund units at that day's Net Asset Value (NAV) to access the desired amount.
Once the redemption is successfully processed, you can withdraw your money. Some apps also offer the option of investing in liquid funds, which allows quicker withdrawals, typically within 30 minutes, provided you have submitted a power of attorney for your account.
It's important to note that there may be an exit load, which is a fee, based on the duration of your investment and the asset management company's (AMC) policies. Additionally, other taxes may apply.
If you can research and select good funds, you can opt for popular apps like Coin, Groww, Paytm Money, and others. Alternatively, having a demat account with stockbrokers can also assist you in choosing mutual funds.
However, it's important to know that stockbrokers receive a commission for their services, which can reduce your returns, especially in the long term. Therefore, it's advisable to choose direct mutual fund apps to minimize expenses.
If you plan to withdraw money periodically, you can put your money in mutual funds via a Systematic Withdrawal Plan (SWP). With SWP, you invest a lump sum amount that continues to earn returns, and a predetermined sum is regularly credited to your bank account, such as every month.
If you need a one-time withdrawal, the process depends on the app you are using. Generally, all apps provide the option to withdraw money with a few clicks, and the funds shall be deposited to your bank account as per the stipulated time frame.
There is no penalty for withdrawing cash from mutual funds. However, if you withdraw before the lock-in period, you may have to pay an exit load.
Asset Management Companies (AMCs) typically charge exit loads, usually 0.25% to 1%, to discourage investors from withdrawing or switching their funds too early.
You can stop or cancel a Systematic Investment Plan (SIP) through the app you are using. You can smoothly pause a SIP, stop it permanently, and resume it with just a few clicks. No money will be transferred to the selected mutual fund during the paused period until you resume it.
Typically, mutual fund companies have mechanisms to encourage investors to keep their funds in the fund for at least a year. Many mutual funds have a lock-in period.
It's acceptable to stop your SIP, but if you withdraw your funds before one year, your gains will be subject to taxation at a rate of 15% plus cess and surcharge. If it's an equity mutual fund, short-term capital gains are applicable if you withdraw your funds before 12 months.
