What Are The Top 5 Features to Look Out For in Your Mutual Fund App?

Mutual Fund

In the FY 2021-2022, more than 3 crores of mutual fund accounts were opened in India. Two primary reasons for this sharp rise in the number of mutual fund investors are the soaring stock market and advanced digitalization. The popularity of mutual funds skyrocketed in the past few years owing to different online platforms offering mutual fund services and an increase in the financial literacy rate. Now, one can use mutual fund apps to directly invest in mutual funds. This article will help you understand how mutual fund apps work and benefits of using these apps, and most importantly, how to pick the best app. 

What is a mutual fund app?

Technology has been providing us with applications to reduce time and effort for different work, and mutual funds are nowhere behind. Multiple brokerage houses, mutual fund distributors, and especially online platforms are coming up with mobile-based applications to be used for investing in mutual funds. 

So, mutual fund applications are like any other application on your smartphone that you use daily. These mutual fund apps have made it way easier for people to invest in mutual fund schemes. You can check and compare different schemes as per your investment goals, risk appetite, and investment tenure and invest in them directly by linking your bank account. 

These applications also help you track all the investments and check how the value of these funds changes daily. You can modify, change, withdraw, and invest in mutual funds schemes using one application only. 

How to pick the best mutual fund app? – 5 top features to check

If you are looking for a mutual fund app to start your investing journey, you must find the best app. Here are five such features of a mutual fund app that you must look out for – 

1. Ease of use & security

The first and foremost thing you need to check while picking a mutual fund app is its easy use, from finding different mutual funds according to your investment preference and risk appetite to choosing between SIP and Lump sum investment to making payments. While ease of use is crucial, it should be in a way that doesn’t hamper the security of the application. Your banking information and personal information are stored on the app, so the app needs high-security measures to protect all the data and information so that no third party can access or misuse them. 

2. Multiple payment options

Next, you need to check how you can make payments for your mutual fund investments. Most of the top mutual fund apps these days include all traditional payment options like Debit cards, credit cards, and internet banking, and along with them, new-age payment options like UPI and wallet payments. You also need to check whether you can automate your investments using e-mandate or not for your SIP payments. The payment options need to be well integrated into the platform and also highly secured.

3. Wide range of mutual fund schemes

The third feature you need to check and evaluate is the range of mutual fund schemes. You may want to invest in different mutual fund schemes for better diversification and tax planning. So, you need to check which all schemes are offered on the mobile application for the mutual funds you are opting for. The app must have the option to find mutual fund schemes according to market capitalization, risk factors, returns, and other crucial details.

4. Modification options

the next up is the modification option. Suppose you are investing in a mutual fund via SIP, and for one month, you want to skip the SIP, the mutual fund app must have such an option readily available for modifying the SIP. Similarly, you may want to invest more amount in one SIP, for the same, you must have the option on the app that allows you to change the amount of SIP every month.

5. Expense tracker

Finally, when you are investing in mutual funds, you are saving a portion of your income, which is essential for future financial planning. An expense tracker can come in handy to plan your finances well and help you invest more by segregating unnecessary expenses. Some of the best mutual fund apps in the country also offer such expense trackers. 

Conclusion

Mutual fund apps have easily made it convenient for newbie investors to invest in mutual fund schemes. However, it all depends on which app you pick for investing in mutual funds. All you need to do is check the features of the best apps on the market and compare them to find the best one for you.

The views expressed in this article are those of the authors and do not necessarily reflect the views or policies of The World Financial Review.