Compare Direct Mutual Funds Investing Platforms: Many of us are aware of the fact that investment in mutual funds is the new trend in the investment market. People prefer to invest in mutual funds because they are promised higher returns than fixed deposits. But most of them are not acquainted with this kind of investment, and they have a lot of questions such as how to invest in direct mutual funds? Which platforms are available for investing in mutual funds? Is it safe to invest through these platforms? Comparison between some of the popular Mutual Funds Platforms such ETMoney, PayTM Money, Zerodha Coin, Kuvera, Groww? In this article, we will try our best to answer some of these questions and make people more clear about investment in mutual funds.
How to Buy Mutual Funds Directly?
Regular and direct mutual funds are considered to be the options available for buying the same mutual fund scheme, managed by the same fund managers who basically invest in the same stocks and bonds. The difference that lies between a regular mutual fund and a direct mutual fund is that in the case of a regular mutual fund, the investor has to pay a commission to the broker, whereas, in the case of direct mutual funds, the investor is not obliged to pay any commissions to anybody. Thus, due to this scheme, an investor can earn 0.50% – 1% more when he/she decides to invest in direct mutual funds.
According to recent Amfi data, direct mutual fund plans successfully managed to make a hold on 40% market share in the last six years.
If one has a proper understanding of mutual funds and has enough time and discipline to make an investment in mutual funds, then he/she can think of investing in mutual funds directly. Choosing mutual funds which have higher returns or have performed well in the last year is not the right approach for investment. There might be chances one can lose money if he/she chooses the wrong mutual fund. One needs to understand that choosing the right mutual fund involves determining its return in the long term. So avoid being penny-wise and a pound foolish. Always try to gain knowledge about the tax rules associated with mutual funds.
Nowadays, with the advancement of technology, one can invest in mutual funds through apps and websites. Presently, there are 44 mutual fund companies in the country. Each company offers its customers an app or a website for investing in mutual funds. But before investing, one has to open an account with a mutual fund company. For example, if one is planning to invest in HDFC Equity Fund, then he/she needs to open an account with HDFC mutual fund. Similarly, if one is planning to invest in ICICI Prudential Bluechip Fund Direct, then he/she needs to open an account with ICICI Prudential Mutual Fund. One needs to open only one account with the mutual fund company, then he/she can invest in any of their mutual funds.
People generally search for platforms where one can find most of the mutual funds in one place. Platforms like ICICIDirect, HDFC Net banking provide these kinds of services, but they charge some commission for that.
Comparison Between Direct Mutual Funds Platform: ETMoney, PayTM Money, Zerodha Coin, Kuvera, Groww
| Description | ET Money App | Paytm Money | Zerodha Coin | Kuvera | Groww |
| Play store Ratings | 4.6 | 4.3 | 3.7 | 4.7 | 4.6 |
| Incorporation Date | November 2016 | September 2018 | April 2017 | October 2017 | April 2017 |
| Number of Users/Money Handled | The platform has 75 lakh Indian users and handles around $1 billion of investments. | It captured a 40% share in the mutual fund market within one year of its incorporation. They are targeting to cross the 1 crore SIP investor mark soon. | The platform has 1.5 lakh Indian users and handles around 3400 crores of investments. | The platform handles around 5500 crores of investments. | The platform has 30 lakh + Indian users |
| Number of Installations | 5 million + | 1 million + | 100K + | 100K + | 1 million + |
| Mobile App Platforms | Android/ IOS | Android/ IOS | Android/ IOS | Android/ IOS | Android/ IOS |
| Official Website | It doesn’t have a website | It has an official website | It has an official website | It doesn’t have an official website | It has an official website |
| Features Offered other than Direct Mutual Funds Investment | Insurance purchase Getting Approved Loans Tracking and managing expenses |
They are planning to launch a stock brokerage service soon, and the platform will allow its users to manage their pension via a single platform. | Users can invest in stocks, ETFs and bonds. | Users have the opportunity to buy or sell 24K 99.9% pure digital gold easily and securely. | |
| Number of AMCs supported | All are supported | All are supported | 40 are supported | 38 are supported | 35 and more are supported |
| How the company helps in mutual fund investments | The app gives recommendations and automates investments with smart and advanced solutions. | The app offers investment ideas and free risk investments. | – | The app provides advice for funds selection and also offers features like goal planning, tax savings and smart rebalancing. | They offer a whole list of mutual fund recommendations from experts and a list of top mutual funds from different categories. |
| Tracking of external investments | Yes, one can get a free portfolio health report for external mutual fund investments. | They keep a detailed tracking of all the investments. | Not available | Not available | One can track his/her investments from other apps such as ET money, Paytm Money, etc. |
Be Careful of Direct Investments in Mutual Funds
One should not eye on huge returns and invest without planning properly. Investment without proper planning can turn out to be dangerous.
Those who do not have ample amount of time, knowledge and patience to keep an eye on their investment then they must consider hiring an advisor who can manage their investment and make a properly planned approach during every investment.
Don’t ever buy a lot of funds because they click away; always try to diversify thing to get a better return in the long run.