The free trading apps are an alternative to mutual funds that permit direct investing in all kinds of mutual funds selected by you through either lump sums or SIPs. These apps usually display an entire list of funds, help you conduct your own research, and then let you choose which ones fit well with your needs. Within minutes, through a few clicks, you could actually be on your way to wealth building.
What is a mutual fund, and what is an SIP?
Mutual funds collect money from numerous investors to invest in different kinds of assets, including stocks, bonds, and other securities. Whenever you invest in a mutual fund, you own its proportionate share in overall fund returns based on the amount of your investment.
How Free Trading Apps Work for Mutual Fund Investing?
A free trading application has integrated many features to make the whole mutual fund investing a convenient affair:
Excellent Selection of Funds
These apps grant you access to an endless selection of mutual funds. You get the option to filter your fund selection by categories, types of risk, and performances.
Easy Registration
You could sign in and go through the entire process of KYC online without much hassle of filling any paper forms. Nowadays, several apps can also allow paperless registration with the help of Aadhaar.
SIP or Lump-Sum
You can select either the SIP option or a one-time lump-sum investment; the choice is yours. Choose an SIP amount you can spare from your monthly allowances, or invest that surplus as a lump sum.
Real-Time Investment Tracking
You can track the investment every minute of your life. General tools like performance charts and history of transactions are available for you to track the funds.
Transactions with Full Security
Apps use secure gateways to protect all your private information and money. Trading apps are mostly set up to follow stricter regulations with utmost discipline, thus guaranteeing utmost safety.
Steps to Invest in Mutual Funds by Free-Trading Apps
Step 1: Download and Register
Just download the app of your choice, that is, the free trading app, and register by entering your mobile number and email.
Step 2: Complete KYC
In KYC, a proof of identity is required. Basically, KYC requires you to upload documents of your PAN and Aadhaar.
Step 3: Browse Mutual Funds
Following the completion of KYC and registration processes, you may peruse the list of mutual funds available for investment on the app. You can utilize filters to select funds that fit your goals and level of risk.
Step 4: Select Your Investment
Select the fund and either SIP or lump-sum investment. Enter the desired amount and confirm the investment.
Step 5: Track Your Portfolio
Post-activation of your investment on the app, you will be able to track its performance. You also have the option to make changes, such as switching funds or modifying SIP amounts.
Why Should Free Trading Apps Be Used for Mutual Fund Investing?
Factors making free trading apps a huge win:
Convenience
You can begin investing anywhere, anytime, all on your phone. No paperwork, no filling forms, and no broker visit.
Wonderful! No Hidden Costs
The apps do not charge commissions from here for mutual fund transactions, so be assured that you invest with no extra costs involved.
User-Friendly
The application is designed to be so easy that it is not difficult to understand how to use the app even if you are a beginner in investing, with its characteristics, tools, and useful features.
Educational and Research
Most of the apps give educational input on mutual funds, enabling you to invest with conviction.
Things to Consider
Even though free apps enhance investment, something has to be kept in mind:
Market Risks
Fund managers carry the market risk in respect of the performance of mutual funds. Some funds are safer than others, whereas on this axis an equity fund carries the highest level of risk.
Selection of Funds
No mutual fund is suitable for all investors. Ensure that you thoroughly comprehend the fund’s objectives and know how well it has truly performed over some time before investing.
Long-Term Commitment
Mutual fund investments are far better suited for long-term investments. Be patient and try not to panic with any short-term fluctuation in the market.
Conclusion
To invest in mutual funds through free trading apps., these apps really simplify the whole process of starting new investments, tracking their flow, and making changes as and when necessary after the inflow of investment. These platforms let you grow your wealth with flexibility, be it investing small amounts via SIPs or going all out on one-time huge investments.
