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Is it safe to invest in mutual funds via online apps?

Dhirendra Kumar explains how safe it is to invest through online apps and how you can verify them yourself

Nowadays, there are too many online apps for investing. Can I trust these for the purpose of investing in mutual funds and SIPs because we are not aware who these third-party apps are through which we invest in markets?
- Rajendra

You can trust these apps without much worry and invest through them. You can also check yourself whether your money has actually been invested or not. Last week itself, a new portal called MFCentral was started. It has been created through the mutual fund industry's Registrar and Transfer Agents (RTAs), namely, KFin Technologies Private Limited and Computer Age Management Services Limited (CAMS).

If you invest in mutual funds, you can validate your investments made there. Whenever you invest in funds through Groww, ETMoney, Paytm Money, Coin by Zerodha, or any other available apps, neither the money resides with these entities, nor can they keep the money with themselves. If they do not invest the money on any particular day, they are mandated to refund the money back to you by the evening of the same day.

Hence I would say that do not worry much about investing through these apps. Also, you can verify these investments, whether the money has been invested or not, and get any information related to it through the MFCentral portal, with just your phone number and PAN card for login.

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