How safe are apps for buying mutual funds?
- Nagaraj, Mumbai
Transcript: There are several apps that you can use to buy mutual funds. However, whenever you use an app, look at whether you are buying a regular or a direct plan. For instance, with Fundsindia and Scripbox, you are will get regular plans (which involve commissions). However, the investments you make through apps or other online intermediaries are reasonably safe. This is because your money is ultimately being given to a mutual fund company and not the app. A good facility in this space is Mutual Fund Utilities which was established by several mutual funds to facilitate direct online investment. Also, your redemption comes directly into your own bank account and this is increasingly done through ECS rather than a cheque. Finally, you can get information on your investments not just from the app but also from registrars such as CAMS and Karvy or the fund company.
This article was originally published on June 22, 2017.
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