4 Indian personal finance apps to check out this Christmas for direct MFs

By Edil Corneille

With advancements in financial technology (FinTech), personal finance is getting transformed and a popular investment option trending these days are direct mutual funds (MFs) in India. Direct mutual fund plans have a lower expense ratio than the regular ones as there is no distributor/agent involved. Thus, this option saves the distribution costs/commissions paid out to the distributor/agent.

It is already time for Indians to think about saving on taxes for the Assessment Year 2021-22 (Financial Year 2020-21) even though the due date of December 31 for filing Income Tax Returns (ITR) for AY 2020-21 has not even passed. Equity Linked Savings Scheme (ELSS) mutual funds are amongst the popular investment options for individuals looking to save on taxes under Section 80C of the Income Tax Act of India. Individuals can opt for the direct mutual fund plans of ELSS funds for higher returns. Axis Long Term Equity Fund, DSP Tax Saver Fund, Mirae Asset Tax Saver Fund, Quant Tax Plan, etc., are examples of ELSS funds.

Wealth management platforms are a blessing as managing one’s finances have become digital and paperless too. Along with offering direct mutual fund options, these personal finance apps have other features too, such as tracking expenses, budgeting, availing loans, insurance, etc. Mentioned below is a list of Indian FinTechs disrupting the personal finance space.

ETMoney

Gurugram-based ETMONEY is an online wealth management app from the house of the Times Of India Group. It is a completely integrated mobile platform offering products across all sections of a user’s financial life such as investments, insurance, and borrowings, among others.

Platforms such as ETMONEY leverage open banking facilities where customers can be provided with personalised financial products and services due to the sharing of data by financial institutions and third-party providers. Customers also have a range of options and can compare different financial products and services provided.

From managing expenses to tracking investments, from generating extra income through investments to saving money in taxes, from investing in SmartSolutions to borrowing money during the cash crunch, ETMONEY is a one-stop shop for all financial needs of the consumer. This AMFI (Association of Mutual Funds in India) certified Mutual Fund app has 4 million Indians on it and it has enabled users from over 500 cities.

Kuvera

Kuvera helps individuals build investment action plans that are expected to help make goals a reality. The Bengaluru-based company allows customers to manage investments for others too from their Kuvera account. This is complementary to the Family Account feature. The managee retains full access to their accounts, and all transactions would be validated and approved from that account owner via OTP.

In April 2019, Kuvera raised $4.5 million in its Series A funding round from London-based Eight Roads, a venture capital company. The platform allows for the setup of the periodic Import filter to automatically generate Consolidated Account Statement (CAS) and get them delivered to the mailbox of the customer.

Another feature offered by Kuvera in addition to switching to Direct Plans from Regular Mutual Funds is TradeSmart which shows customers the optimal amount they can switch or redeem with the least tax and exit load while switching or redeeming an order.

Paytm Money

Paytm Money is 100 per cent owned subsidiary of One97 Communications. The Bengaluru-based wealth adviser is the 4th consumer brand from One97 after Paytm, Paytm Mall and Paytm Payments Bank. Along with direct mutual funds and other investment options, Paytm Money recently announced the IPO feature on its platform.

In end November, Noida-based Paytm announced that its wholly-owned subsidiary Paytm Money now facilitates investments in Initial Public Offers (IPOs) in India. This launch is expected to benefit retail investors with wealth creation opportunities.

Paytm Money is said to offer a seamless interface to make changes, cancel or reapply the bidding application within the IPO window. It is equipped with features enabling investors to track upcoming IPOs, view the company’s history and other details, download the prospectus, and also check the performance of past IPOs. This service is available on the Paytm Money app and the website.

Zerodha

Zerodha is an Indian financial services company based in Bengaluru and offers brokerage-free equity investments, retail, institutional broking, currencies, and commodities trading. Founded in 2010, the company has a presence in 9 Indian cities. It is also an official member of NSE’s consultative committee for growing business.

Zerodha has mentioned that over 3 million clients place millions of orders every day through its ecosystem of investment platforms, contributing over 15 per cent of all Indian retail trading volumes.

The company also runs a number of open online education and community initiatives to empower retail traders and investors. Zerodha’s FinTech fund and incubator, Rainmatter, has invested in several FinTech startups with the goal of growing the Indian capital markets. The company’s direct mutual fund platform, Zerodha Coin, lets individuals buy direct mutual funds online with no commission passback, directly from asset management companies.

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