Best App for Mutual Fund Investments in India 2024

In recent years, the Indian markets have witnessed a significant surge in the number of investors turning to mutual funds to invest. However, novice investors often find it hard to find the right mutual fund investment app or broker to invest in, making mistakes here can often prove to be costly in the long run. Through this article, we aim to provide a comprehensive list of the best mutual fund apps in 2024. These have been selected after taking into account various features and cost metrics. Keep reading to find out!

What are Mutual Funds? 

Before we jump into mutual fund apps, let’s first understand what mutual funds are and how they work as this will help us understand what we should expect from an ideal mutual funds investment app and which app is best for mutual funds.

Mutual funds function by pooling money from multiple investors. This however is done with the common objective to invest in a diverse range of assets like stocks, bonds, and commodities to achieve a common goal. These mutual funds are managed by professional managers who decide which investments must be bought and sold to reach the fund’s objectives. These professional managers however must adhere to a certain mix of investments and goals which are detailed in the fund’s prospectus. 

There are a variety of mutual funds available to investors, including equity, debt, hybrid, and Index funds which track the performance of Indices like Nifty 50 and the BSE Sensex. 

Mutual funds are also distinguished based on the means through which you invest in them as well. These are largely classified as Regular and Direct mutual funds. Let’s understand them better.

Best Apps for Mutual Fund Investment in 2024

Here is a list of the top mutual fund apps in India in 2024, along with the features they provide.

Direct Vs Regular Plans of Mutual Funds

Typically an investor can invest in Mutual Funds with 2 modes.

1. Regular Plans

Mutual funds with regular plans or simply regular mutual funds involve Asset Management Companies (AMC) that run these mutual funds employing or reaching out to other parties as distributors for their mutual funds. These distributors are tasked with reaching out to investors and encouraging them to invest. These distributors also guide the new investors in helping them understand where they should ideally invest and how much based on their goals. These distributors typically do not charge upfront fees, however, this does result in hidden costs that the investor often overlooks. This hidden fee often results in huge amounts over the long term.

How do I find out if I am investing in a Regular Fund? 

Investors can find out if they are investing in a regular fund if they find any of the following:

• You have investors through an individual whose business is to help people invest in mutual funds and this individual is not directly employed by the AMC but instead sells their products. 

• You invested through platforms like ScripBox and NJ Wealth. 

• The expense ratio of the mutual fund is more than 1%. 

• The name of your mutual fund has “Regular” or “Reg” in it. 

The factors above will most likely let you know if you have invested in mutual funds with regular plans. You can also import your investments on the Rupeezy app and the app features will identify the type of mutual fund you have invested in!

2. Direct Plans

Direct plans allow investors to invest directly with the AMC bypassing distributors and avoiding any extra hidden charges which would also include the commission paid to these distributors. 

In this case, you have to instruct the mutual fund company that no distributor was involved while opting for direct plans. Doing this will save you a huge chunk of your money over the years. But how does an investor identify if his fund is a Direct Plan? Let’s find out! 

How do I find out if I am investing in a Direct Fund? 

Investors can find out if they are investing in a regular fund if they find any of the following:

• You invested through a stock broker like Rupeezy (Direct Mutual Fund App), Zerodha, or Groww (They generally offer direct mutual funds).

• The name of a mutual Fund has ”Direct” or “Dir” in it.

• The expense ratio of Direct Plans is generally lower than 1%.

Advantages of Direct Mutual Funds

The primary advantage of direct mutual funds lies in the expenses you are charged which is significantly lower than a regular mutual fund. For eg. let’s compare the expenses and how your returns are affected by analysing the Quant Small Cap Fund under the Regular and the Direct plan. 

Under the Direct plan, the Quant Small Cap Fund has an expense ratio of 0.7%. This would mean that if an investor starts a SIP of Rs.1000 for 20 years (15% annual returns estimated), then he would receive Rs.13.17 Lakhs after 20 years. 

On the other hand, if the investor chooses the  Quant Small Cap Fund Regular Plan which has an expense ratio of 1.67% then under the same conditions he would receive Rs.11.99 Lakh. This small difference in the expense ratio of the two plans has a significant impact on your investments. In a situation where your mutual fund investments reach Rs.1 Cr, would result in you paying rs.1 Lakh every year.

Read our latest blog "Direct vs Regular Mutual Funds" to learn more about types of mutual fund investments

How do I Select the Best Mutual Funds App? 

A good mutual fund app will provide you with the following:

• The Platform offers you Direct Plans for mutual funds. 

• The Platform allows you to track all your investments in one place. 

• The Platform makes it easier for you to find a fund that suits your needs and goals. 

• The Platform gives you access to all types of mutual funds. 

• The platform offers insights into your investments to help you become a better investor. 

• And finally, the platform comes from a well-established and trustworthy broker. 

What Makes Rupeezy Stand Out?

Rupeezy stands out as an advanced mutual fund investing platform with an analytical nature that other platforms lack. Other than the execution of investments and redemptions this app provides crucial data which helps investors make better investment decisions. The following are some features that stand out: 

• Smart Explore: Rupeezy's smart explore feature offers a Risk Return view that allows users to visualize and understand the risks. This ensures that investors don’t just invest based on returns.

• MF Lab: Rupeezy Invest app offers a Virtual Portfolio Builder ( MF Lab ), to empower investors. Here investors can create a mix of mutual funds with their desired allocation and see how this portfolio would have performed over the years together. Once the investors are satisfied with the portfolio you have created, you can invest in that portfolio.

• Impact Analysis: Rupeezy’s Impact analysis is a one-of-a-kind feature. Whenever you want to invest in a new mutual fund, Rupeezy’s Impact analysis will tell you the impact of this purchase on your current portfolio namely the impact on the portfolio’s Risk and Returns. 

Conclusion

Choosing the best app for mutual funds with direct mutual funds and the right tools is essential for investors looking to optimize their risks and maximize their returns. By considering factors such as returns, risk, Direct commission-free plans, and additional services offered, investors can identify brokers and applications offering the most competitive investing platform. Whether opting for a discount broker like Rupeezy or a full-service broker like HDFC Securities, investors should conduct thorough research and due diligence to make an informed decision that aligns with their investing objectives and risk tolerance. Happy Investing!