The investment was a difficult job before. The long paperwork and weeks of processing but now it is all hassle-free you just have to upload some documents and in hours your Demat account will be ready and you are good to go with any online broker. But is it really safe investing through apps?
Yes, it is safe to invest without worrying through these apps. Also, you can check whether your investments really went into the chosen scheme or not. Through ‘Mutual Fund Central’ which was launched last week.
The Mutual Fund Central Portal has been set up by Caffeine Technologies and Computer Age Management Services, which act as registrars and transfer agents (RTAs) for the mutual fund industry. No matter what app you invest in, you can check those investments on the Mutual Fund Central portal.
You can always check the investment details from the Mutual Fund Central portal with the help of your PAN and phone number. Be it Grove, EtiMoney, Paytm Money, Zerodha Coin, or any other app. They do not hold funds related to your investments. If you do not invest, you will need to repay the amount. So you do not have to worry about investing in apps.
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Direct plans have lower costs compared to regular plans. According to SEBI rules, except for the distributors’ commission on regular plans, the rest of the expenses are on direct plans.
The new schemes will further increase the expense ratio between regular and direct plans. This may be due to the fact that funds and companies pay higher commissions to dealers. The benefit of lower costs in Direct plans is evident over a period of five to ten years.
This is a long-term benefit of switching to direct plans. If not here’s a new product just for you! Withdrawals and reinvestments are taxable. Even if invested in the same scheme they are considered as new investments. So the profit made till then may have to be taxed. In the case of equity schemes, the exit load is 1–2%. This exit load is payable if the investment is withdrawn within the year in which it was invested.
So if you want to switch to direct plans, it is better not to withdraw investments that are less than a year.
What is the difference between a value fund and a focused fund? Is the interest on the deposit in the savings bank account received every month or every three months?
Interest on Savings Bank Account Deposit is calculated on a daily basis. However, banks charge that interest every three months. If you look at another question you asked. A focused fund is a different equity scheme. Investment in a limited selection of different sector companies. Value fund performance separation. Companies that do not participate much in the market rally invest value funds in companies that are available at lower prices compared to the internal value.
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