Kendhe so far prefers CAMS app, which allows direct plans without use of any intermediary, and thinks the stock exchange platforms would be the right choice too. CAMS has a service that allows you to invest via systemic investment plan (SIP) and also lumpsum amount.
As far as Mutual Fund Utilities goes, it allows you to invest in as many as 38 fund houses out of the total of 44 asset management companies in India. It also provides Robo-advisories through a customised portfolio using algorithms and technology. However, for several Robo-advisors and free transaction platforms, they have a slightly earlier cut-off time to qualify to get the same day’s net asset value (NAV). Reason: They deal with exchanges, who collect these order and send them to the registrar and transfer agents.
In other words, theirs is an additional step. Robo-advisory is a good option when you need help investing for financial goals like retirement, but don’t want or can’t afford a complete life financial plan. Your advisory needs changes over time and these platform handles that and provides the right guidance at the right time. As far as the latest stock-exchange platforms they will let you invest in MF till the official cut-off time, and hence get the same days NAV. But you won’t get any customised readymade portfolio suggestion.
Currently, several registered investment advisors are already using the stock exchange platforms to buying, selling MF as well as setting SIPs, systemic withdrawals plan, systematic transfer plans and others. The same facilities will be now available for direct investors. Ganesh Ram Head BSE Star MF says: “This is expected to provide a level-playing field to exchange MF distribution platforms vis a vis MF Utility.”
Keep in mind, when it comes to direct MF investments, they are not suitable for first-time investors, as market volatility can force such investors to churn or withdraw their investments. As a result, they risk losing long-term compounding potential of their investments.