Latest News

Pros and Cons of Buying Mutual Funds Through Mobiles

With the association of the fintech industry with the financial and investment banking sectors, all of the operations can be easily done without going anywhere. The smart phones and the PCs are helpful for you in making as much as possible paperless investment via an application.

Since fintech have deeply involved with the financial institutions, all of the financial transactions are being carried out online by a large fraction of people. The involvement of the fintech has made all the financial transactions cost effective.

Are you still wondering how to invest in Mutual Funds? There are various mobile apps like the Fisdom and WealthTrust that makes your investment in the mutual funds easier and handy. These apps allow you to purchase, sell or switch the schemes. These apps also facilitate the investment in SIPs or as lump sums. They are user friendly and can be accessed anywhere and anytime. These mobile apps are also enabled to provide you the details regarding the mutual fund schemes, the risk factors, lock in periods and much more. These apps are not just cost effective but are also time-saving.

The advantages of buying mutual funds via smart phones –

  • The ease of transaction :- The people carry their smart phones with them, which makes it easier to buy mutual funds anywhere anytime. You can also check your portfolio; track the performance of the mutual funds and the available schemes within seconds.

  • The purchase of mutual funds over mobile phones is cheaper :- It is because you do not have to pay the commission fee or market research fee to the broker as the role of the broker is skipped when you apply online. If you apply through a broker, then you are liable to pay the fee which makes it comparatively costlier.
  • Detailed information and the market research :- One need not to worry about the market research as the mobile apps is capable of providing you all of the required information. These apps provide you the information about the past performances of the schemes, the market research, the risk factors, etc. in great depth. With the help of this information, you can easily choose the best suited mutual fund.
  • Transparency :- The data provided to you is crystal clear and in an easy to understand manner.
  • Tax efficient :- The mobile apps also provide you details about the part of your portfolio from which you can withdraw the mutual funds by paying the least possible tax.

The disadvantages of buying mutual funds via smart phones –

  • Chances of biasness :- The apps can be biased towards some mutual funds. They may earn commissions for recommending the mutual funds to customers.
  • Restricted utilization of the parameters :- The qualitative and quantitative parameters are equally important. The apps can lack in providing the effective qualitative analysis being a fintech application.
  • Recommendations can be incomplete :- The suggestions of mutual funds can be based upon recent performance and not past performances. Compare the funds with the benchmark.
  • The privacy of the user is lost.
  • The apps can suggest for impulsive transactions causing loss to the user.

Leave a Reply

Your email address will not be published. Required fields are marked *