We live in a day and age where any business activity that is possible offline is possible (or will soon be) online. And investing is no different. In the last half a decade, a vast majority of Indians, especially the younger generation, has gotten increasingly comfortable with buying online. E-commerce is a part of our lives and investing online will soon become the de facto choice. There are many reasons for considering investing online. Here are a few:
1. Lower Expense Ratio: When you decide to invest online and visit the website of a mutual fund company, you transact directly with them. When you choose to invest in the Direct Plan of a scheme, they save on the intermediary expenses, which are then passed on you, in the form of a lower expense ratio. Which means that the invested amount is a bit higher.
2. Time-Saving: Investing online can help you save a lot of time. Since all the transactions and verifications are carried out online, it is a fast and seamless experience. If you are an existing investor, or if you are KYC compliant, you can breeze through. Just log-in, browse, select, and invest, all in one go, from anywhere, at any time.
3. Ease of Comparing: When you are investing online, you have time and are not under pressure to decide quickly or sign the dotted line in haste. Mutual fund companies offer various online resources, calculators, and interactive charts and tables for you to compare various mutual schemes so that you can pick the ones that meet your risk appetite and investment objective.
4. Online Reviews: Another benefit of investing online is the freedom to seek third-party reviews, insights, and recommendations. You can access various websites, read expert opinions, evaluate fund performance vis-à-vis its benchmark. Also, read testimonials and case studies about investor experience and service standards. This allows you to learn more and make an informed choice without worrying about mis-selling.
5. Flexibility: Investing online means doing it all yourself. This offers an opportunity to explore various options and the flexibility to choose diverse funds and build a unique portfolio. Since there is no rush to invest, you can learn at your pace, start slow, invest small amounts, and get comfortable with the process. Moreover, you can invest in liquid mutual funds and setup STPs – ideas that intermediaries might not always offer.
6. Accuracy: One of the key benefits when you invest online, is that you fill the application form yourself. This ensures that there is no incorrect or missing information. You also read all the term and conditions and have an opportunity to understand them correctly or seek online help.
7. Ease of Servicing: When you invest online, you create a dedicated ID and password that can be used access an interactive dashboard that carries key information about your investments and its performance. With just a few clicks you can carry out financial as well as non-financial transactions.
8. Data Security: In the online space, you experience peace of mind because your personal and financial data is encrypted and secure with the mutual fund company. Most companies, like IDFC Mutual Fund, use globally accredited online security measures to ensure that your data is untraceable and encrypted at all times.
IDFC offers a robust online portal for all your mutual fund investing needs. Whether you are an existing investor or investing with IDFC for the first time, you can get access to various investment opportunities in the form of equity, debt, and hybrid funds.
Choose a fund based on your investment horizon, gestation period and financial objectives.
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