Is investing in mutual funds via mobile investment apps safe?


Traditionally, investing through brokers and agents was preferred. However, with the advent of technology and digitization, newer investment mediums have become popular. One such medium is investing through mobile apps. Mobile apps charge a minimum fee and allow you to trade and manage your mutual funds comfortably from your phone. Hence, the investment process is faster and hassle-free as there is no physical documentation or meeting required.

Safety of investment in mutual funds through mobile apps

Mutual fund applications, like the Monefy App from TATA Capital, are primarily online distributors. These mobile apps act as an intermediary providing convenience of investment so that you do not have to physically visit the mutual fund company branch or contact any broker or agent physically. These apps only function as enabling mechanisms and have no control over your portfolio or money. Therefore, it is completely safe to invest in mutual funds through mobile apps like the Moneyfy app.

How does investing in mutual funds through mobile apps work?

All mutual funds are managed by asset management companies (AMC), which are further regulated by SEBI (Securities and Exchange Board of India) – the apex capital market regulator. The Association of Mutual Funds of India (AMFI) also passively regulates the AMCs to protect the interest of mutual fund investors.

When you invest in a mutual fund of your choice through a mobile app, your money goes directly to the AMC of the fund. The money does not go to the mobile app. Further, even when you make a redemption request through the mobile app, the money is directly credited to your bank account and not to the mobile app. You have to submit your documents online on the mobile app platform.

Mobile apps only charge a minimum fee for transactions and serve to act as a path for investors. If the mobile app company fails or becomes bankrupt, there is no impact on your mutual funds. You are directly associated with the fund company. Hence, the bankruptcy of the mediator – the mobile app – has no negative influence on your investment.

What is the benefit of investing in mutual funds through mobile apps?

Investing in mutual funds through mobile apps offers significant advantages. Some of them are:

  • Ease of investment as there is no need to physically visit the branch or submit the documents
  • Minimum documentation
  • Faster and hassle-free buying process as everything is online. If you are KYC verified, the process is easier
  • One-stop-platform for all mutual fund needs. Mobile apps like the Moneyfy app allow you to buy, review, research, monitor, and sell your mutual funds from your phone
  • Minimum brokerage charges
  • Invest anywhere, anytime

The Moneyfy App

The Tata Capital Moneyfy App is your all-in-one platform for investing, insurance, and loan needs. Especially for mutual fund investments, the app offers goal-based investing options, allowing you to set goals and wisely invest in mutual funds to achieve the targets.

Equipped with intelligent features, the Moneyfy app allows you to securely and quickly invest in mutual funds. You can also compare different mutual funds. The app offers a SIP calculator, real-time portfolio tracking, and other tools, making your mutual fund investment process simple and easy.