Is it safe to invest in direct mutual funds?

Yes, it is safe to invest in mutual funds through mobile applications. This is because an investor’s money cannot reside with these entities, nor can they keep the money with themselves.

Are direct mutual funds better?

The Net Asset Value or NAV, of any direct mutual fund, is always higher than the regular version of the same mutual fund. … If the fees paid to the agents can be avoided, then the amounting NAV could be higher. As a result, direct funds have a higher NAV than regular funds of the same mutual fund.

Can I lose all my money in mutual fund?

With mutual funds, you may lose some or all of the money you invest because the securities held by a fund can go down in value. Dividends or interest payments may also change as market conditions change.

Which direct mutual fund is best?

Best Direct Mutual Funds

  • IDFC Core Equity Fund – Direct Plan Growth. …
  • Mirae Asset Emerging Bluechip Fund – Direct Plan Growth. …
  • ICICI Prudential Bluechip Fund – Direct Plan Growth. …
  • Nippon India Large Cap Fund – Direct Plan Growth. …
  • HDFC Mid-Cap Opportunities Fund – Direct Plan Growth. …
  • L&T Midcap Fund – Direct Plan Growth.
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What is the safest way to invest in mutual funds?

Ways to invest in Mutual Funds

  • Offline investment directly with the fund house. You can invest in schemes of a mutual fund by visiting the nearest branch office of the fund house. …
  • Offline investment through a broker. …
  • Online through the official website. …
  • Through an app.

What are the disadvantages of direct mutual funds?

Disadvantages of investing through a Direct Plan

Comparing and analysing mutual fund performance and comparing it with the investment strategy most suitable for you requires more effort and attention than the Regular plan.

Why is Direct plan NAV higher?

The NAV of direct plans is higher than their regular counterpart because of their higher returns. As the operating expenses of the fund is reduced from its net AUM, the lower expense ratio of its direct plan results in higher NAVs.

Why mutual funds are bad?

However, mutual funds are considered a bad investment when investors consider certain negative factors to be important, such as high expense ratios charged by the fund, various hidden front-end, and back-end load charges, lack of control over investment decisions, and diluted returns.

Can I become rich by investing in mutual funds?

Investing in mutual funds is one of the most popular and effective ways to create wealth for the future. It is also a great way to generate passive income. This is due to the appealing long term returns and diverse investment options.

Which fund is lowest in risk?

List of Low Risk Mutual Funds in India

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Fund Name Category Risk
Edelweiss Arbitrage Fund Hybrid Low
Nippon India Arbitrage Fund Hybrid Low
BNP Paribas Arbitrage Fund Hybrid Low
Mirae Asset Overnight Fund Debt Low

Is Groww direct or regular?

Online platforms like Groww also provide direct mutual funds and provide a gateway to connect you directly to the AMC. All plans on our platform are direct plans.

Which SIP is best for 5 years?

Best SIP Plans for 5 And 3 Years in Equity Funds and Debt Funds

Fund Name 5 years Return 3 years Return
HDFC Balance Advantage Fund 15.50% 16.60%
ICICI Prudential Bluechip Fund 10.81% 8.48%
Kotak Standard Multicap Fund 13.24% 11.14%
Quant Infrastructure Fund 24.14% 38.02%

Which mutual funds give highest return?

List of Equity Mutual Funds in India

Fund Name Category 1Y Returns
Axis Midcap Fund Equity 40.4%
Invesco India Infrastructure Fund Equity 55.8%
Mirae Asset Emerging Bluechip Fund Equity 37.2%
Mirae Asset Tax Saver Fund Equity 34.5%

Are mutual funds safer than stocks?

Advisor Insight. A mutual fund provides diversification through exposure to a multitude of stocks. The reason that owning shares in a mutual fund is recommended over owning a single stock is that an individual stock carries more risk than a mutual fund. This type of risk is known as unsystematic risk.

Which mutual fund is best for beginners?

5 Best SIP plans to invest in 2021 for Beginners

Fund Name NAV Expense ratio
Mirae Asset Tax Saver Fund Rs 29 0.30%
PGIM India Midcap Opp RS 37.29 0.45%
Mirae Asset Emerging Bluechip Fund Rs 90 0.73%
Parag Parikh Flexi Cap Fund Rs 43.13 0.91%
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Is buying mutual funds online safe?

So, in a single word – YES, investing in Mutual funds online is safe and secure. The ownership of the units is transferred to you and the credit / debit fund transactions happen directly from your bank account.