Benefits of buying mutual funds online

Technology has made investments quick and easy. Thanks to digitalisation, you no longer have to visit your bank branch or stand in queues to invest. Recently, a number of online platforms have come up to support online mutual fund investment.

Some offer direct mutual fund plans, whereas others provide advisory services. You can now search, compare, choose, and trade mutual funds in the comfort of your home. Online platforms have also enabled the direct purchase of mutual funds, without an intermediary.

Here are some of the benefits of buying mutual funds online:

• Time-Saving

In the absence of digital technology, investors had to endure numerous hassles to invest in mutual funds. To start a mutual fund SIP, investors had to visit the nearest bank, investment broker, or the registrar’s office. This would involve taking the time to discuss their investment goals and options with brokers, financial advisors etc. Further, it was also challenging to go through details of every scheme before choosing one, making investments a time-consuming chore.

The advent of a large number of online portals, in recent times, has made mutual fund investments more convenient. You get to explore different schemes, compare funds, just like you would compare gadgets, before purchasing.

The entire investing procedure can now be completed in just a few clicks. Thanks to a wealth of information online, queries such as ‘What is a mutual fund?’, ‘What are the types of mutual funds’ etc. can now be answered with ease.

• Minimal documentation

Formerly, you had to submit a duly filled form along with self-attested copies of the necessary documents. However, in an online portal, KYC (Know Your Customer) procedure is now efficient and straightforward. Your personal identification and residential proof verification can be done in the shortest possible time, with documentation procedure close to nil.

• Secure transactions

While buying mutual funds offline, you can make payments either through cash, cheque or demand draft. These methods are not only time consuming, but can also be challenging to track. However, when you invest in mutual funds online, you get a chance to choose from a variety of payment options. You can choose to transact through your credit card, debit card, UPI (Unified Payment Interface), wallets etc. Online payment gateways are quick, secure and straightforward when compared to physical payment methods. Also, in case of an error, payments can be reversed, in the shortest time.

• Artificial Intelligence tools

It is easier to invest in direct mutual funds online, also because of various artificial intelligence (AI) tools. These days to know more about investment, you don’t need to visit a financial advisor. Various online tools and calculators can predict the future value of your finances. Further, it’s easy to mark goals and make productive investments to fulfil them. These days, investment banks and financial institutions use various kinds of UI (User Interface) bots to help investors find answers to their investment queries. There are also robotic investment tools that can suggest funds suiting your risk appetite, goals and time.

• Easy investment tracking

By investing in mutual funds online, you can access your investments anytime. You can track your finances through your desktop, smartphone etc, and transact as per your convenience. Various online portals can help you track the growth of your fund, as well as your journey towards your goals.

Therefore, buying mutual funds online has numerous benefits. An investor can save time, make secure transactions, avoid lengthy documentation, find the right investments, compare and track their finances with minimal efforts.