Choosing the Right Mutual Fund App: Factors to Consider

So much of adulting is about making choices. 🙃

From appetizers to apps – you will often find yourself spoiled for choice! And if you add investing to that equation, you can definitely end up in an overwhelming spot. 

But, do you know what always helps with that? Detailed checklists!

Today, there are a number of mutual fund apps in India, and we thought we would help you out with some pointers to consider while you head into decision-making mode and get ready to pick an app for your investment journey – 

  1. Reputation – Is the mutual fund app of your choosing well-reputed? This is one of the first factors to consider while picking an app that will handle your money! Look for a list of reliable mutual fund apps and put some time and effort into researching every company and its team to get an idea of their overall market reputation – a poor reputation or performance will have a direct impact on your investments.
  1. Security – Is the mutual fund app you are looking into a secure platform? A secure investment app will be registered with at least some regulatory body (SEBI, RBI). These registration details should be readily visible to you – the investor! You can also go a step further to enquire about the kind of data encryption your chosen app employs (for instance, Deciml employs 256-bit encryption). This one is an important factor to consider!
  1. Diversification – Is the mutual fund app you want to use offering you a diverse range of investment options? If you are just starting out investing in mutual funds, then diversification is probably not on your mind – but, it should be! The way to create wealth and reach financial nirvana is by investing across options to mitigate risk, and the right investment app will give you the option to invest in debt, equity, and hybrid mutual funds.
  1. Convenience – Is said mutual fund app making your life easier? Today, automated investing and smart investing options are invaluable. They are time and cost-efficient, and it means that you can invest with a few taps on your phone. It is also prudent to ensure that any mutual fund app you use has a seamless interface and can offer you some support in the form of information and educational resources.
  1. Support – Is the mutual fund app responsive to your queries? A lot of mutual fund apps will offer customer support – but you need to identify which one is known for exemplary customer service. Also, keep an eye out for apps that have instant chat support (like Deciml’s Dot!) that can answer your questions and share any necessary insights with you. Good customer service is non-negotiable, folks!
  1. Cost – Is this mutual fund app a paid app? There are a lot of mutual fund investment apps that will charge a fee for investing through them. On the other hand, some apps might be free and require no subscription costs. There might also be some free apps that have some paid features or might levy transactional charges on investments. All these parameters of potential expense must be considered.
  1. Flexibility – How little can you invest with your chosen mutual fund app? Some apps like Deciml will allow you to invest as little as ₹1 into mutual funds. But, a lot of apps also have other limits for their minimum investment. Knowing the minimum investment amount can be useful, especially for young investors who do not necessarily have a large amount of accumulated wealth to invest.

These seven factors can ultimately help you decide which mutual fund investment app is right for you. In addition to these, you can also look out for apps that have interesting and unique features. For instance, Deciml’s home screen dial – Sprint – helps investors see their investment trajectory over the next 10 years. Creative features like this can help you stay motivated to invest!

Remember, that not all mutual fund apps will qualify against each of these parameters. So, it is up to you to decide what aspects of the app are important for you to be able to meet your overall financial and personal goals.