Best Apps To Buy Direct Mutual Funds In India

Investing is the only way you can accumulate long-term wealth. Of all the options available, mutual funds are the most popular investing avenue. This is because they have a very high potential to give good returns in the long term. They are also diversified in nature and are professionally managed by experienced fund managers. Moreover, you can start investing in a mutual fund with an amount as low as Rs 500 a month. Thanks to technology, there are many apps through which you can start investing in mutual funds. Here's a list of the nine best apps to buy direct mutual funds.

What are direct mutual funds?

Direct plan in mutual funds is similar to buying a product directly from the manufacturer without involving a retailer. This will reduce the overall cost of the product. In direct plans, you will directly invest in mutual funds without any distributor. Since you are investing directly, you need not pay any commissions, reducing the overall cost. Low costs imply high profits; hence, your returns will also be higher in direct plans. However, investing in direct plans would require managing your investment.

Best Apps for Direct Mutual Funds

Many apps offer direct mutual funds. They offer services like portfolio scanning and monitoring without charging additional fees. We have shortlisted the nine best apps that offer direct mutual funds worth checking out.

#1 Jupiter Money

Jupiter Money is a money management app that helps you track your expenses, save for goals, and invest money. It offers direct mutual funds to investors on its platform. Jupiter Money's unique features, such as no-penalty SIP, ease of investing, and zero investment fees and commission, make the app matchless.

Currently, the app allows existing mutual fund investors to start investing in mutual funds on its platform.

Features of Jupiter Money

• Additional returns up to 1.5% due to zero commission and zero brokerage.
• No penalty SIP
• Easy investing
• Track all your mutual fund investments in one place by uploading a consolidated account statement (CAS).

You can also try their Free Mutual Fund Portfolio Analyser which gives free report on how your funds are performing. Check it here: Free Mutual Fund Portfolio Analyser

#2 Groww

Groww is a wealth management platform that offers direct mutual funds. Investing in direct mutual funds with Groww is simple and hassle-free. It doesn't charge any brokerage and commissions and gives additional returns of up to 1.5% compared to regular mutual funds. You can also track all your investments in a single dashboard. It also offers stocks, futures and options, and an intra-day trading facility.

Features of Groww

• Easy account opening from the comfort of your home and paperless KYC.
• Zero commission and brokerage
• Single dashboard to track investments
• Withdrawal time – within 24 hours

#3 ET Money

ET Money is another platform that offers direct mutual funds. It also offers FDs, NPS, and insurance. The app is very easy to use and is fully automated. ET Money also gives insights about your investments and suggests strategies as per your goals.

Features of ET Money

• Account opening is completely online and can take up to 3 days.
• Withdraw time – T+7 days
• Customer support through email
• Zero commission and brokerage

#4 MyCams

MyCams is a single gateway to invest in multiple direct mutual fund schemes. It enables faster and easier ways to invest in a mutual fund. You can also manage all your mutual fund investments in one place on the myCams app.

Features of myCams

• One view of your portfolio on the app and access it with ease
• Invest, redeem, switch, and set up new SIPs within no time
• MyCams iSIP will help you use net banking and one-time mandate (OTM) to start a new SIP with myCams.
• It has a Common One Time Mandate (OTM) for all your SIPs. You don't have to keep filling out new forms for every SIP.
• First-time investors can easily complete their KYC online.

#5 KFinKart

The app's primary objective is to make investing simple. It has one-touch login that enables you to invest in a host of direct mutual funds across various AMCs. KFinKart allows you to easily link your family folios across AMCs to track and invest.

Features of KFinKart

• One-touch login, allowing you to navigate across mutual funds.
• The portfolio dashboard allows you to view multiple folios in a single view and link family members' folios.
• E-Mandate allows you to register online for a seamless investing journey.
• Gives insightful analytics about your mutual fund portfolio

#6 Coin By Zerodha

Coin by Zerodha offers direct mutual funds from over 40 fund houses. It enables you to create, pause, skip, cancel and modify your SIP investments anytime without additional charge. The app can be navigated seamlessly and which enables easy fund discovery.

Features of Coin by Zerodha

• Enables investing in mutual funds at zero commission.
• It has flexible investing options that will let you invest, cancel and pause investments whenever you want.
• It gives detailed information about the fund, fund house and peers, which will help you choose the best fund.
• Mutual funds are held in demat format, making it easy to obtain a loan against your investments.

#7 PayTM Money Mutual Funds App

Paytm Money is one of India's fastest-growing trading and investment platforms. It offers direct mutual funds to investors, giving them up to 1% more returns than regular funds. The app doesn't charge any commission or brokerage like others. Apart from mutual funds, it also has shares, futures and options trading on its platform.

Features of Paytm Money

• Follow investor first approach and has a fully digital KYC process
• Flexible investment options allowing you to manage and automate investments
• Allows you to switch from regular to direct plans
• Gives portfolio analytics for better decision-making

#8 Cash Rich

Cash Rich is a mutual fund investment app that allows you to invest in direct mutual funds. It offers recommendations based on your needs and tracks your portfolio. Also, it is the only app with a dynamic SIP option that maximizes returns.

Features of Cash Rich

• It has an intuitive user interface enabling quick mutual fund transactions.
• Gives recommendations based on your profile and goals.
• Continuous tracking and monitoring of investments.
• Dynamic SIP will help you invest more when the market falls and less when markets are pricy.
• Gives free investment portfolio review.

#9 Kuvera

Kuvera is beginner friendly and is a one-stop-shop for all your mutual fund needs. It helps you invest, track, and monitor your investments in one dashboard. Through goal-based investing, you can invest for a particular goal. Apart from mutual funds, it also offers FDs, stocks, US Stocks, EPF, and gold.

Features of Kuvera

• No commission or brokerage on mutual fund investments.
• Easy online account opening.
• Quick withdrawal – turnaround time within 24 hours
• Helps in investing based on goals
• One family account to manage joint investments.
• Has experienced financial managers to manage your investments.

Direct vs Regular mutual funds

Every mutual fund comes in two plans, the direct plan and the regular plan. Though both plans have the same portfolio, they have different net asset values (NAV) and returns. Following are the major differences between direct and regular mutual funds.

Meaning

As mentioned above, direct funds do not involve a distributor. You invest directly with the AMC (asset management company) without a financial advisor. You are required to pick mutual funds on your own for your portfolio. In contrast, in a regular plan, you invest through a distributor, who is also an advisor. They will help you choose the best funds based on your goals.

Total Expense Ratio (TER)

Since you are investing on your own in direct plans, you don't have to pay any commissions, which will reduce the fund's total expense ratio. In the case of regular funds, the expense ratio will be slightly higher as it includes the commissions you must pay the advisor.

Net Asset Value (NAV)

The net asset value of a fund is the market value of the underlying securities of the scheme. The total expense ratio of a mutual fund is adjusted from the NAV. Since the expense is deducted from the NAV, the NAV for direct plans is slightly higher than regular plans. As a result, the returns will also be higher for direct funds.

Control

You have full control over your mutual fund portfolio in direct mutual funds. However, with control comes responsibility, and you must put in some effort to study mutual funds and manage your investments. Updating KYC (Know Your Customer), monitoring investments regularly, and other procedural tasks must be done independently. But a little effort can help you make higher returns in the long run.

Frequently Asked Questions

Which direct mutual fund app is best?

Several apps offer direct mutual funds. Check for the additional services they offer apart from offering direct mutual funds, and choose the one you are comfortable with. Some of the best apps to invest in mutual funds are Jupiter Money, Groww, ET Money, MyCams, KFinKart, Coin By Zerodha, Paytm Money Mutual Funds App, Cash Rich and Kuvera.

How can I buy direct mutual funds?

You can buy direct mutual funds from the AMC directly, or you can buy them through investment platforms that offer direct mutual funds, such as Jupiter or Groww.

Is it better to buy mutual funds directly?

Investing in direct mutual funds has several benefits over regular mutual funds. Their expense ratio is low, and the returns are also higher. However, you will have to do some homework and put in some effort to manage your investments.

Is Groww a direct mutual fund?

Groww is a wealth management platform that offers direct mutual funds from 45 AMCs. You can build your mutual fund portfolio or invest in pre-made portfolios that they offer based on your goals.

Is it safe to buy direct mutual funds?

Highly experienced professionals manage mutual funds, and the platforms that offer direct mutual funds are only a liaison that enables you to invest in mutual funds. Mutual funds are very safe investments, provided you have chosen funds based on your goals and risk appetite.