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Is Purchasing Mutual Funds Within Investment Apps Safe?

Milind

Milind Vadjikar  | Answer  |Ask -

Insurance, Stocks, MF, PF Expert - Answered on Nov 14, 2024

Milind Vadjikar is an independent MF distributor registered with Association of Mutual Funds in India (AMFI) and a retirement financial planning advisor registered with Pension Fund Regulatory and Development Authority (PFRDA).
He has a mechanical engineering degree from Government Engineering College, Sambhajinagar, and an MBA in international business from the Symbiosis Institute of Business Management, Pune.
With over 16 years of experience in stock investments, and over six year experience in investment guidance and support, he believes that balanced asset allocation and goal-focused disciplined investing is the key to achieving investor goals.... more
Kaderesan Question by Kaderesan on Nov 13, 2024Hindi
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Purchasing mfs in apps are safe?

Ans: Hello;

It is better to use MFcentral/MFutilities or AMC platform for MF transactions.

Apps like ETmoney, Jupiter money, Fi money are registered with AMFI as category 1 EOPs but level of their risk management and data security is not ascertained.

Recently there was one issue reported regarding Groww app but they have clarified on the matter however it doesn't look satisfactory.

Be cautious and careful because ultimately your hard earned money is at stake.

Best wishes;
DISCLAIMER: The content of this post by the expert is the personal view of the rediffGURU. Users are advised to pursue the information provided by the rediffGURU only as a source of information to be as a point of reference and to rely on their own judgement when making a decision.
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Ramalingam

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Mutual Funds, Financial Planning Expert - Answered on May 02, 2024

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I am buying MFs through icici direct It was till now mostly elss to save tax I want to invest in bulk ( no SIP ) now My questio is I gather icici would charge 1.5 % upfront for any buys and 1% on it every year then onwards so after 10 yars i gain say 15 % overall then , 11.5 % ( 1.5 +10 ) will already been charged by icici leaving me with 3.5% returns? Is this correct ? they never rwspond transparently abd give evasive replies
Ans: It's important to clarify the fee structure and its impact on your overall returns when investing through platforms like ICICI Direct. While they may charge an upfront fee and an annual fee for maintaining your investments, the impact on your returns may not be as significant as you've outlined.

Firstly, the upfront fee is typically a one-time charge applied at the time of purchase and is not deducted annually from your investment returns. Similarly, the annual fee (if applicable) is usually a percentage of the assets under management and is deducted from your investment periodically, rather than as a lump sum at the end of the investment period.

While fees can affect your returns, it's essential to consider the potential returns generated by your investments over time. If your investments perform well, they can potentially outweigh the impact of fees on your overall returns.

However, it's crucial to have clarity on the fee structure and its impact on your investments. If you're unsure about the fees charged by ICICI Direct or if you feel they're not being transparent, it may be beneficial to seek advice from a Mutual Fund Distributor (MFD) who can provide unbiased guidance and help you navigate the investment process more effectively. Working with an MFD can bring synergy to your investment journey and ensure you make informed decisions aligned with your financial goals.

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Ramalingam

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Mutual Funds, Financial Planning Expert - Answered on May 24, 2024

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Sir - Is having MFs in Demat form advantageous rather than in physical possession? I shall be grateful for your advice.
Ans: Demat vs. Physical Mutual Funds: Which is Better?
Let's delve into the advantages and disadvantages of holding Mutual Funds (MFs) in Demat form versus physical possession to help you make an informed decision.

Understanding Demat Accounts
Demat Account Advantages
Convenience: Demat accounts offer a single platform to hold various financial securities, including stocks, bonds, and mutual funds.
Electronic Transactions: Allows for easy buying, selling, and transferring of mutual fund units, eliminating paperwork and manual processes.
Demat Account Disadvantages
Annual Charges: Demat accounts typically incur annual maintenance charges, adding to the overall cost of holding investments.
Transaction Charges: Each transaction (buying, selling, or transferring units) attracts transaction charges, increasing the cost further.
Opting for Physical Mutual Funds
Advantages of Physical Mutual Funds
No Annual Charges: Unlike Demat accounts, physical mutual funds do not entail annual maintenance charges, reducing overall expenses.
No Transaction Charges: Physical mutual funds eliminate transaction charges associated with buying, selling, or transferring units.
Conclusion: Which Option to Choose?
Given the disadvantages associated with Demat accounts for holding mutual funds, opting for physical possession seems more advantageous in the long run.

Recommendation
Considerations for Holding Physical Mutual Funds
Convenience: Physical mutual funds offer ease of ownership without the hassle of account maintenance charges or transaction fees.
Cost-Efficiency: By avoiding annual charges and transaction fees, you can minimize expenses and maximize returns on your investments.
Simplicity: Holding physical mutual funds simplifies your investment portfolio management and reduces the administrative burden.
Making an Informed Decision
While Demat accounts offer convenience and electronic access to financial securities, the associated costs may outweigh the benefits, especially for mutual fund investors.

Seek Professional Advice
Consult with a Certified Financial Planner (CFP) to assess your individual circumstances, risk tolerance, and investment objectives. A CFP can provide personalized guidance and recommend the most suitable investment approach aligned with your financial goals.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

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Ramalingam Kalirajan  |9407 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 30, 2024

Asked by Anonymous - May 30, 2024Hindi
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Sir/madam, can you plz tell that how safe is any app for mutual funds stocks like Grow ,upstox,zerodha etc what would happen if in future apps would stop working then what would happen to my investment..how would i clain for my money then
Ans: Investing through apps for mutual funds and stocks like Grow, Upstox, Zerodha, etc., comes with its own set of advantages and risks. While these platforms offer convenience and accessibility, it's essential to consider the safety of your investments and the reliability of the platforms themselves.

Safety of Investment Apps
Reliability Concerns: The long-standing reliability of discount brokers and digital platforms is often questionable. These platforms may prioritize profit-making through cross-selling and selling user data rather than focusing solely on the interests of investors.

Cybersecurity Risks: Investing through apps exposes you to cybersecurity risks, such as data breaches and hacking attempts. While reputable platforms implement security measures, no system is entirely immune to cyber threats.

Operational Risks: There's a possibility that these apps may face operational issues or downtime, leading to temporary disruptions in accessing your investments or executing transactions.

Accessing Funds if an App Shuts Down

Regulatory Protections: If an app shuts down, regulators will intervene, but the process might be complex and lengthy.
Demat Account (for Stocks): Your actual investments (stocks and shares) are held in a Demat account (with CDSL or NSDL), not with the app. You can transfer this account to another broker to access your holdings.

Mutual Funds: Your mutual fund holdings are likely held with the mutual fund house itself, not the app. You can contact the mutual fund house directly to redeem your investments.

Process Timeline: Accessing your funds could be slow, depending on the platform's shutdown process and regulatory procedures.

Importance of Human Connect
Personalized Assistance: Investing through a regular Mutual Fund Distributor (MFD) provides the advantage of human interaction. MFDs offer personalized assistance, guidance, and support, helping investors navigate through market uncertainties and address concerns effectively.

Regulatory Oversight: MFDs operate under regulatory frameworks and adhere to compliance standards, ensuring transparency and accountability in their dealings with clients.

Conflict Resolution: In the event of disputes or issues with investments, having a human intermediary like an MFD facilitates smoother conflict resolution and grievance redressal compared to digital platforms.

Conclusion
While investment apps offer convenience and accessibility, investors should assess the safety and reliability of these platforms. Considering the long-standing concerns surrounding discount brokers and digital platforms, opting for a regular Mutual Fund Distributor (MFD) provides the assurance of human connect and personalized assistance. MFDs prioritize investors' interests and offer guidance tailored to individual financial goals and risk profiles, enhancing the overall investing experience.

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www.holisticinvestment.in

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Nayagam P

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My daughter got 54.67 in jee and in 12 she has got 76 percent want to do btech cse.what college she will get. Advice me
Ans: With a JEE Main percentile of 54.67854, corresponding to an All-India rank around 200 000–220 000, the following Northern Indian institutes typically close CSE seats within this range under the All-India quota:

College | Location | Approximated JEE Main Closing Rank Range (All-India) | Placement Rate (Last 3 Years):
Sharda University. Greater Noida, UP. 180 000–220 000. 75–85%.
Galgotias University. Greater Noida, UP. 200 000–240 000. 70–80%.
Amity University. Noida, UP. 150 000–200 000. 80–90%.
KIET Group. Ghaziabad, UP. 190 000–230 000. 75–85%.
Manav Rachna International University. Faridabad, HR. 160 000–210 000. 70–80%.
Chitkara University. Punjab. 180 000–220 000. 75–85%.
Chandigarh University. Mohali, PB. 170 000–210 000. 80–90%.
Graphic Era University. Dehradun, UK. 190 000–230 000. 78–88%.
Lovely Professional University. Jalandhar, PB. 150 000–200 000. 85–92%.
JIMS Rohini. Delhi. 180 000–220 000. 70–80%.

recommendation
For the best balance of academic reputation, modern labs and consistent CSE placements, recommendation is Amity University Noida. As strong alternatives, consider Chandigarh University and Lovely Professional University for their higher placement rates and broad recruiter networks. All the BEST for Admission & a Prosperous Future!

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Sir, I am getting computer science with business in iiit Lucknow and Electrical Engineering in MNNIT Allahabad. Which one will be better. I got 12888 rank in JEE mains 2025
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Sir, please advise which one to choose, Mechanical at NIT SURATHKHAL or Electrical at NIT Rourkela/ Calicut or ECE from NIT, Jamshedpur....not particular for any branch but mainly from placement perspective. Kindly advise.
Ans: NIT Surathkal's Mechanical Engineering program boasts 93% B.Tech placement rates in 2025, with NBA/NAAC accreditation, PhD-qualified faculty, and advanced manufacturing, CAD/CAM, thermal sciences, and automation laboratories featuring over 22 specialized labs including robotics, automotive electronics, and microsystems. The department maintains strong industry partnerships with companies like Microsoft, Google, Oracle, and top PSUs, achieving an average package of ?13 LPA with median ?12 LPA. NIT Rourkela's Electrical Engineering achieved 90% placements over three years with 100% placement rates in 2022-23, featuring specialized faculty in power systems, power electronics, control automation, and signal processing, alongside a Centre of Excellence in Industrial Electronics & Robotics. The department recorded an average package of ?13.62 LPA in 2024. NIT Calicut's Electrical & Electronics program secured 97.01% placements in 2024 with an average package of ?10.99 LPA, supported by NBA-accredited programs, modern electrical machines, power electronics, control systems laboratories, and dedicated research centres. NIT Jamshedpur's ECE achieved 90.29% placements in 2024 with an average package of ?15.65 LPA, featuring PhD-qualified faculty, advanced VLSI and communication labs, and strong industry connections.

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Asked by Anonymous - Jul 05, 2025Hindi
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Sir...how should i prepare to score 250+ out of 300 in jee mains..and secure admission at nit calicut for cse..please guide me.
Ans: To score 250+ marks in JEE Main (equivalent to 99+ percentile), you need to achieve high accuracy across all three subjects. This score opens doors to top NITs including NIT Calicut CSE, which typically requires an All-India rank below 4,000-5,000 for general category students.

Key Strategies for 250+ Score: 1. Master High-Weightage Topics First - Focus on chapters that consistently appear in JEE Main with maximum weightage.

Physics: Current Electricity. Electromagnetic Induction. Properties of Solids and Liquids. Optics. Modern Physics.

Chemistry: Transition Elements & Coordination Chemistry. Periodic Table. Thermodynamics & Gaseous State. Chemical Bonding.

Mathematics: Coordinate Geometry. Limits, Continuity & Differentiability. Integral Calculus. Matrices & Determinants.

2. Conceptual Understanding Over Memorization - JEE Main tests deep conceptual clarity rather than rote learning. Focus on understanding the "why" behind every formula and concept, especially in Physics where problem-solving patterns are crucial.

3. NCERT Mastery (Especially Chemistry) - NCERT forms the foundation, particularly for Chemistry where direct questions are frequently asked. Every line in NCERT Chemistry textbooks should be thoroughly understood.

4. Strategic Practice & Mock Tests - Solve at least 20+ previous year papers and take weekly mock tests to build exam temperament and identify weaknesses. Analyze every wrong answer to avoid repetition.

5. Time Management & Accuracy
Practice solving questions within limited time per mark. Focus on accuracy over speed initially. Then gradually build speed.

Subject-Specific Preparation Strategy - Physics: Start with mechanics and thermodynamics from Class 11. Then move to electrodynamics and modern physics from Class 12. Practice numerical problems extensively.

Chemistry: Begin with physical chemistry concepts. Memorize all inorganic chemistry reactions and trends. Master organic reaction mechanisms.

Mathematics: Strengthen algebra and calculus foundations. Practice coordinate geometry extensively. Solve diverse problem types.

Achieving AIR Under 1000: Advanced Strategies - For AIR under 1000, you need a very high percentile. This requires:

1. Perfect Conceptual Clarity - Master every topic deeply with ability to solve advanced-level problems. Focus on understanding rather than just solving.

2. Advanced Problem-Solving - After mastering JEE Main level questions, gradually move to JEE Advanced level problems for enhanced problem-solving skills.

3. Error Analysis & Improvement - Maintain detailed error logs. Analyze patterns in mistakes. Work systematically to eliminate weaknesses.

4. Consistent Performance - Aim for high marks in each subject consistently. Even one poor section can drop your rank significantly.

Optimal Study Schedule for Class 11 Students: Daily Routine (School-Going Students)
Morning (5:30 AM - 8:00 AM):

5:30-6:00 AM: Wake up, freshen up.

6:00-7:00 AM: Study most challenging subject (Mathematics/Physics).

7:00-8:00 AM: Breakfast and school preparation.

School Hours (8:00 AM - 3:00 PM):

Attend classes actively. Focus on NCERT concepts.

Utilize free periods for quick formula revision.

Evening Study (4:00 PM - 10:00 PM):

4:00-6:00 PM: Coaching homework/DPPs/Practice.

6:00-6:30 PM: Break.

6:30-8:00 PM: Subject rotation (Physics/Chemistry/Mathematics).

8:00-9:00 PM: Dinner break.

9:00-10:00 PM: Revision and note-making.

Study Hours Distribution - Class 11 Students: Start with 3-4 hours daily. Gradually increase to 6-8 hours by end of Class 11.

Subject-wise allocation: Equal time for all three subjects (1.5-2 hours each). Extra focus on weaker areas.

Weekend Strategy: Extended study sessions. Full-length mock tests on Sundays.

Essential Study Materials & Resources - Physics: NCERT. H.C. Verma. D.C. Pandey for problem-solving.

Chemistry: NCERT (mandatory). O.P. Tandon. Morrison & Boyd for organic.

Mathematics: NCERT. R.D. Sharma. Coordinate Geometry by S.L. Loney.
Quick Recap/Summary: For 250+ JEE Main Score: Master high-weightage topics (Current Electricity. Coordinate Geometry. Transition Elements). Achieve high accuracy through conceptual clarity. Solve 50+ previous papers. Take weekly mocks. Maintain NCERT mastery especially for Chemistry. For AIR

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DISCLAIMER: The content of this post by the expert is the personal view of the rediffGURU. Investment in securities market are subject to market risks. Read all the related document carefully before investing. The securities quoted are for illustration only and are not recommendatory. Users are advised to pursue the information provided by the rediffGURU only as a source of information and as a point of reference and to rely on their own judgement when making a decision. RediffGURUS is an intermediary as per India's Information Technology Act.

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