If you are a beginner starting investing, and you ask anyone (literally anyone!) what a good place to start might be – they will tell you it’s mutual funds.
We want to delve deeper into why this is the case, and how beginners can start investing in mutual funds using popular mutual fund investing apps.
Using apps to invest in mutual funds offers users easy and smart investment options – in an entirely automated manner! Keep in mind that you can invest in most mutual funds through lump sum payments or Systematic Investment Plans (SIPs) and there are a number of key benefits these endow on the investor –
- Smaller Amounts – Most mutual fund apps will allow you to invest using amounts as small as ₹500 a month (yes, through SIPs!). So, investing in mutual funds through an app doesn’t need to mean that you have to invest using large sums of money – they allow you to start small and build your investments as you go.
- Flexibility – Unlike Fixed Deposits or Recurring Deposits, mutual fund investing is a bit more flexible when it comes to withdrawals. Mutual funds can be liquidated at any time – but here is the disclaimer – you need to vet your chosen mutual fund app to understand if there’s any exit load (amount to be paid while withdrawing) associated with your selected investment option.
- Rupee Cost Averaging – Mutual fund investing through SIPs has one important benefit for investors, and that is the advantage of rupee cost averaging. Rupee cost averaging means that instead of investing a lump sum amount into any number of units of your selected fund, you will break up that lump sum to make regular investments over a period of time while the prices of these units vary. So if you buy fewer units for a higher price in one month, there is also a chance you’ll end up buying more units at a lower price in another month – averaging out your costs of investing.
In addition to these three key benefits, mutual funds are also a good way to diversify your portfolio. The prices of stocks can rise and fall – but you can mitigate your risk by investing through a mutual fund app that gives you various investment options. So you can invest in either debt, equity, or liquid funds, or you can also invest in tax-saving mutual fund schemes – the choices are umpteen!
Once you’ve found your preferred mutual fund app, be sure to explore all your options before you start investing. And of course, keep in mind that – “Mutual funds are subject to market risk. Please read the offer document carefully before investing.”
Here are some mutual fund investing apps that can help you get started with your investment journey –
Paytm Money
You can use the Paytm Money app to invest in mutual funds through SIPs as low as ₹100 per month. Paytm offers users debt, equity, liquid, and ELSS (Equity Linked Savings Scheme) tax-saving mutual funds as well. The direct plans even guarantee 1% higher returns! Most importantly. you can withdraw your investments by incurring a minimal exit load.
Groww
Groww is another popular mutual fund investment app that allows users to create a diverse portfolio – one that can be curated using low-risk and high-risk options, tailored to meet each investor’s financial goals. You can invest in debt, equity, liquid, or hybrid funds using Groww. The minimum SIP investment through Groww is also set at ₹100, and this app for mutual fund investing also offers a few options that have no exit load at all
Deciml
The Deciml App dons many hats – it can be a micro investing app and a mutual fund app – and it retains micro investing even when investing in mutual funds. Users can invest as little as ₹10 in the debt and equity mutual fund options provided by Deciml – through a daily investing automated mandate. The investments happen on a day-to-day basis, and withdrawals are possible at any point in the investment tenure. So investing in mutual funds becomes a habit-forming activity with Deciml!