7 Best Apps for Mutual Fund Investment in 2024

Mutual fund apps are completely legal in India and provide interested users with access to the markets for building their investment portfolios and gaining tax-saving benefits. In fact, there are several mutual fund apps available in India that facilitate the process of investing in mutual funds.

These apps offer a user-friendly interface and allow you to invest in both regular and direct mutual funds. They also provide personalized investment recommendations based on your financial goals.

It’s important to note that while these apps can be a great way to invest in mutual funds, it’s always advisable to do your own research before investing. You should also consider factors such as your financial goals, risk appetite, and investment horizon before making any investment decisions.

Additionally, it’s important to read the terms and conditions of each app carefully before investing to ensure that you are aware of any fees or charges associated with the app.

Investing in mutual funds using a mobile app offers several benefits, making it a convenient and accessible option for investors. Here are some of the advantages:

• Convenience: Mutual fund apps allow you to invest, monitor your portfolio, and manage your investments from the comfort of your smartphone or tablet. You can access your investments 24/7, which is particularly useful for busy individuals.
• Accessibility: Apps make it easy for anyone with a smartphone and an internet connection to start investing in mutual funds, thereby increasing financial inclusion.
• Ease of Use: Many mutual fund apps are designed with user-friendly interfaces, making it simple for both novice and experienced investors to navigate and invest without extensive financial knowledge.
• Paperless Transactions: Mutual fund apps often support paperless transactions, eliminating the need for physical paperwork. This reduces the administrative burden and environmental impact associated with traditional investment processes.
• Quick Transactions: With apps, you can execute transactions quickly, whether it’s buying or selling mutual fund units. This agility can be beneficial when reacting to market changes or taking advantage of investment opportunities.
• Real-Time Information: Most mutual fund apps provide real-time updates on fund performance, NAV, and market news. This helps investors stay informed and make informed decisions.
• Cost-Effective: Many mutual fund apps offer lower fees and expenses compared to traditional investment methods. This can lead to cost savings over time, increasing your overall returns.
• Goal-Based Investing: Some apps offer goal-based investment features, helping you set and track financial goals, such as saving for retirement, education, or a down payment on a house.
• Systematic Investment Plans (SIPs): Apps make it easy to set up and manage SIPs, allowing you to invest a fixed amount regularly, which can be an effective way to build wealth over time.
• Security: Reputable mutual fund apps typically employ robust security measures to protect your financial information and transactions, including encryption and two-factor authentication.
• Diversification: Mutual funds pool money from multiple investors to invest in a diversified portfolio of assets. Apps enable you to easily diversify your investments across various asset classes and schemes, reducing risk.
• Transparency: Mutual fund apps often provide detailed information about fund holdings, performance, and expenses, enhancing transparency for investors.

Read More: Best Equity Mutual Funds

Selecting the best mutual fund app for your investment needs is crucial to ensure a smooth and effective investing experience. Here are some important factors to consider when choosing a mutual fund app:

• User-Friendly Interface: Look for an app with an intuitive and easy-to-navigate interface. A user-friendly design can make it more convenient to manage your investments.
• Regulatory Compliance: Ensure that the app is regulated and authorized by relevant financial authorities in your country. In India, for example, mutual fund apps should be registered with the Securities and Exchange Board of India (SEBI).
• Fund Selection: Check whether the app offers a wide range of mutual funds from different AMCs. A good app should provide access to a variety of funds across asset classes.
• Cost and Fees: Understand the fee structure associated with the app. Look for low expense ratios and any additional charges for transactions or account maintenance. Some apps may offer commission-free investing or lower fees.
• Performance Tracking: The app should provide real-time updates on your portfolio’s performance, including the NAV, historical returns, and fund details.
• Research Tools: A quality mutual fund app should offer research and analysis tools to help you make informed investment decisions. This might include fund fact sheets, historical data, and investment calculators.
• SIP and Investment Options: Check if the app allows you to set up Systematic Investment Plans (SIPs) and offers flexibility in choosing investment amounts and frequencies.
• Security Features: Prioritize apps with robust security measures, such as encryption, biometric authentication, and two-factor authentication, to protect your financial information.
• Customer Support: Assess the availability and responsiveness of customer support services, as you may need assistance or have questions about your investments.
• Transaction Process: Consider the ease of executing transactions, including buying, selling, and switching funds. A seamless transaction process is essential for efficient investing.
• Account Management: Check if the app provides features for managing your account, including updating personal information, nominee details, and linking your bank account for transactions.
• Goal-Based Investing: Some apps offer goal-based investment options, helping you plan and invest for specific financial goals like retirement, education, or buying a home.
• Reviews and Ratings: Look for user reviews and ratings of the app on app stores or trusted review websites to gauge user satisfaction and reliability.
• Performance History: Research the app’s track record, including its uptime, reliability, and history of technical issues.
• Educational Resources: Consider whether the app offers educational resources, articles, videos, or tutorials to help you improve your understanding of mutual funds and investing.
• Exit Strategy: Understand the app’s policies and procedures for withdrawing or closing your investments if needed.
• Redemption Process: Know how the app handles mutual fund redemptions and the time it takes for funds to be credited to your bank account.
• Compatibility: Ensure that the app is compatible with your mobile device’s operating system and has a responsive web version for desktop access.

To open a mutual fund account using a mutual fund app in India, you typically need to provide certain documents and details for KYC compliance and account verification. Specific requirements may vary slightly depending on the mutual fund app and the regulatory guidelines in place at the time of your application.

It’s a good practice to check with the app or its customer support for the most up-to-date and detailed information on the documents required for opening a mutual fund account through their platform.

Here are the common documents and information required:

• Permanent Account Number (PAN) Card: Your PAN Card is a mandatory document for investing in mutual funds in India. It serves as a unique identifier for tax purposes.
• Aadhaar Card: Providing your Aadhaar card is usually required for KYC verification. It helps confirm your identity and address.
• Bank Account Details: You will need to link your bank account to the mutual fund app for transactions. This includes providing your bank account number, IFSC code, and a canceled cheque or bank statement as proof.
• Photographs: You may be asked to provide recent passport-size photographs for account verification.
• KYC Form: You will need to fill out a KYC application form provided by the mutual fund app. This form includes personal details, contact information, and a declaration of your tax residency.
• Address Proof: While your Aadhaar card can serve as both identity and address proof, you might be asked to provide an additional document as proof of residence. Common address proofs include utility bills (electricity, water, gas), passport, or voter ID.
• Income Proof: Some apps may require you to provide income-related documents, such as your latest salary slip, income tax return (ITR), or Form 16, especially if you plan to invest a significant amount.
• Nominee Details: You should provide the details of the nominee (if any) for your mutual fund investments, including their name, relationship with you, and contact information.
• KYC Verification Process: You may need to complete an in-person verification (IPV) or a video KYC verification, depending on the mutual fund app’s requirements.
• e-Signature: Some apps allow you to sign documents using Aadhaar-based e-signature methods digitally.

Withdrawing money from your mutual fund app typically involves a straightforward process. Here are the general steps to follow:

• Log In: Open the mutual fund app and log in to your account using your credentials.
• Select the Fund: Navigate to the app’s section where you can manage your investments. Locate the mutual fund or funds from which you want to withdraw.
• Initiate a Redemption: Choose the option to initiate a “redemption” or “withdrawal” for the specific mutual fund you wish to take money out from.
• Specify Amount: Enter the amount you want to withdraw. Some apps may also allow you to select whether you want to withdraw the entire investment or just a portion.
• Confirm Details: Review the withdrawal details to ensure accuracy. This includes the amount, the fund name, and the bank account where you want the money deposited.
• Authentication: The app may require you to verify the transaction using a secure method, such as a PIN, password, or biometric authentication (e.g., fingerprint or face recognition).
• Submit Request: Once you’ve confirmed the withdrawal details and completed any required authentication, submit your withdrawal request.
• Confirmation: After submitting the request, you should receive a confirmation message or email. This will include the details of your withdrawal, such as the expected processing time and the amount.
• Wait for Processing: Mutual fund apps typically process withdrawal requests within a specified timeframe, which can vary depending on the app and the mutual fund. It may take a few business days for the funds to be transferred to your linked bank account.
• Check Your Bank Account: Monitor your linked bank account to confirm when the withdrawn funds have been deposited. It’s essential to keep an eye on your bank statements for accuracy.

Transferring money from your mutual fund to your bank account typically involves a redemption or withdrawal process. Here’s a step-by-step guide:

• Log In to Your Account: Access your mutual fund account through the respective mutual fund company’s website or the investment platform where you hold your mutual fund investments.
• Navigate to Fund Redemption or Withdrawal: Look for an option that allows you to initiate a fund redemption or withdrawal. This option is usually located in the account management or transactions section of your online account.
• Choose the Mutual Fund: If you have investments in multiple mutual funds, select the specific mutual fund or funds from which you want to withdraw money.
• Specify the Amount: Enter the amount you wish to transfer from the mutual fund to your bank account. Some platforms may also offer options to withdraw the entire investment or a partial amount.
• Select Bank Account: Choose the bank account to which you want the money to be transferred. Ensure that this bank account is linked or associated with your mutual fund account.
• Verify Details: Review the withdrawal details for accuracy, including the withdrawal amount, the selected mutual fund, and the designated bank account.
• Authentication: Depending on the platform’s security measures, you may be required to authenticate the transaction. This could involve entering a PIN, providing your password, or using two-factor authentication methods.
• Submit the Request: Once you’ve confirmed the withdrawal details and completed any required authentication, submit your request for the transfer.
• Confirmation: After submitting the request, you should receive a confirmation message or email. This confirmation will typically include details such as the expected processing time and the amount being transferred.
• Processing Time: Mutual fund companies usually take a few business days to process redemption requests. The timing can vary depending on the fund and the company’s policies.
• Check Your Bank Account: Monitor your linked bank account for the arrival of the withdrawn funds. It may take a few additional days for the funds to appear in your bank account, depending on the banking institution’s processing time.
• Review for Accuracy: Once the funds arrive in your bank account, review your bank statement to ensure that the transferred amount matches your withdrawal request.