The Right Way to Invest in Mutual Funds in India (2025) | Best Apps & Method Explained

Summary

This video by Amit Upadhyay delves into the essentials of mutual fund investing, emphasizing the importance of choosing the right investment method over just picking funds or timing the market. Amit explains the difference between storing mutual fund units in a Demat account versus the traditional Statement of Account method, highlighting the pros, cons, and long-term implications of each. He evaluates popular aggregator apps like INDmoney, Groww, Kura, and Mutual Fund Central, comparing their research capabilities, tax insights, and user experience. The video guides investors toward cost-effective, flexible, and research-friendly approaches for managing mutual funds efficiently, debunking common myths about Demat necessity.

Takeaways

• 📈 Mutual fund investing is essential for long-term investors, but many focus more on fund selection and SIP timing than on the right investment methods and tools.
• 🏦 Asset Management Companies (AMCs) manage the bulk of mutual fund operations, while transaction platforms (BSE Star MF, NSE NMF) and RTAs (CAMS, KFintech) handle transactions and back-office tasks.
• 💻 Mutual fund investing is already digitized and centralized, whether units are held in Statement of Account form or in a demat account.
• 💡 Storing mutual funds in demat form is optional and primarily useful for viewing stocks and mutual funds together or for easier transfer, but it adds complexity and potential costs.
• ⚠️ Demat accounts may restrict certain functionalities like taking loans against mutual funds and can complicate Systematic Transfer Plans.
• 📄 Statement of Account method is cost-effective, flexible, supports third-party apps, and allows loan against mutual funds while keeping data centralized.
• 🔍 Direct AMC investment ensures trust and better customer care, but limits fund selection to that AMC and often lacks robust research and comparison tools.
• 📱 Aggregator apps provide a convenient way to view and manage mutual funds from multiple AMCs, often offering better research, tax, and systematic plan capabilities.
• ⭐ IndMoney and KFintech's Mutual Fund Central are strong aggregator platforms, with IndMoney excelling in research and KFintech in transaction reliability, while some apps like ET Money and Paytm Money have limitations.
• 💬 Personal experience shows that user experience varies: IndMoney and KFintech provide strong research and reliability, while Groww offers better customer support, highlighting the importance of choosing the right platform based on individual needs.
• 📝 The presenter emphasizes flexibility and long-term strategy, recommending Statement of Account method over demat for most investors to avoid being tied to one platform and unnecessary costs.

Q & A

What is the main purpose of the video by Amit Upadhyay?

The video aims to explain the fundamentals of mutual fund investment and guide viewers on the best methods and apps to use for a long-term investing journey.

Why do most investors get confused when choosing a mutual fund investment platform?

Investors are often confused because there are many apps and methods available for mutual fund investment, and they are unsure which platform or method is the best for their needs.

What role do Asset Management Companies (AMCs) play in mutual fund investments?

AMCs or Fund Houses manage the investment of the mutual funds, including backend processes like transactions and data management, often outsourcing part of this work to third parties.

What are the two main transaction platforms for mutual funds in India?

The two main platforms are the Star MF platform of BSE and the NMF platform of NSE.

What is the difference between storing mutual fund units in a demat account and using the Statement of Account method?

Storing units in a demat account allows you to see both stocks and mutual funds in one place and facilitates transfers, but it adds extra complexity and costs. The Statement of Account method, managed directly by AMCs, is cost-effective, centralized, and supports full mutual fund functionalities like loans against funds and systematic transfer plans.

Why does Amit Upadhyay advise against using demat accounts for long-term mutual fund investments?

Because demat accounts introduce an additional layer, create dependency on a brokerage platform, may involve fees, and limit certain mutual fund functionalities such as taking loans against funds or using systematic transfer plans.

What are the advantages of buying mutual funds directly from an AMC's website?

Buying directly from an AMC provides trust, better customer care, and ensures direct mutual fund transactions without additional intermediaries or charges.

What limitations exist when purchasing mutual funds directly from multiple AMC websites?

Investors must manage multiple logins, cannot easily compare funds on a single platform, and may encounter varying website functionalities and limited information regarding taxes and mutual fund details.

What are aggregator apps for mutual funds, and what benefits do they provide?

Aggregator apps consolidate mutual funds from multiple AMCs in one platform, providing research, tax information, portfolio tracking, and easy investment capabilities. They often sell direct mutual funds and allow centralized management without opening a demat account.

Which aggregator apps were highlighted as most effective in the video, and why?

IndMoney, Kura, Groww, and Mutual Fund Central were discussed. IndMoney is noted for its strong research capabilities, Kura and Groww for better user experience, and Mutual Fund Central for transactional reliability backed by CAMS and KFintech.

Why were ET Money and Paytm Money discounted as aggregator apps in the video?

ET Money offers advanced features only to paid users, and Paytm Money often forces the opening of a demat account, which limits flexibility and may confuse investors.

What criteria did Amit use to compare aggregator apps?

He compared apps based on parameters like demat and non-demat view, family account capability, research capability, tax information, XIRR returns, capital gains report, ELSS reports, transaction reliability, customer care, and overall user experience.

Can investors take loans against mutual funds held in a demat account?

No, loans against mutual funds are only possible if the funds are held in the AMC-managed Statement of Account method, not in a demat account.

What is Amit Upadhyay’s overall recommendation for long-term mutual fund investors?

He recommends using the Statement of Account method for flexibility, full functionality, and centralized management, preferably through reliable aggregator apps or directly via AMC websites rather than demat accounts.