Is There A Better Platform To Transact In Mutual Funds Than WhatsApp? Know Here…
Sep 09, 2019

Author: Aditi Murkute

(Image source: Vector created by fullvector -

WhatsApp chat messenger, the most popular communication app, can now be used for mutual fund investments. This technological advancement is a huge step for the simplification of the investing process.

Aditya Birla Sun Life Mutual Fund, Motilal Oswal Mutual Fund, the registrar and transfer agency Computer Age Management Services (CAMS), and Wishfin (a financial market player) have enabled WhatsApp investing as an addition of one more investment platform to the already existing ones.

Existing investors can invest a lump sum or via SIP by sending a text to the numbers that are provided. New investors must first complete their KYC procedure on the website. Aditya Birla Mutual Fund allows you to redeem investments, get your account statement, capital gain statement, and get NAV of your schemes.

Motilal Oswal Mutual Fund allows its existing investors to purchase equity schemes, index fund, NFOs, and hybrid schemes. Motilal Oswal doesn't allow you to buy debt funds. And CAMS has launched a WhatsApp-based bot 'CAMServ' that allows you to purchase units, redeem your scheme, start a SIP, receive your account statement, check status of your transaction, and make additional purchases in existing or new folios of 15 AMCs in which you are an existing investor.

But how safe is it to invest in mutual funds through WhatsApp is a question of major concern. Since it is a popular app, investing through it would be a highly convenient approach, but the facility alone should not be the reason for you to start or continue your investments in mutual funds.

One shouldn't consider investing in mutual fund through texts, it wouldn't be a wise approach. Since investing is an individualistic exercise chalking out a goal-based financial plan by considering your risk profile through texts could be cumbersome. Hence to invest in a disciplined manner via SIP, must be well thought through with prudence and proper step by step guidance.

Instead, you should consider a Robo advisory platforms. They are digital advisors who provide portfolio management and financial planning services online, without little or no human intervention at a cost-effective price.

[Read: How To Create A Portfolio Of The Best Mutual Funds With Robo-Investing]

In the financial space, automation, i.e. artificial intelligence, used is the next level of investment offering to compensate for all the shortcomings of a human investment adviser.

There are following benefits when you consider investing through a robo-advisory platform:

  1. Robo-advisor is accessible 24x7, unlike human advisers;

  2. Eliminates personal bias element, contrary to human advisers;

  3. Robo-advisory platforms are very convenient, easy to use, and time-savers;

  4. Can be accessed from any place where internet network is available;

  5. Service is universal for people of all income groups;

  6. Perform complex algorithms quickly to provide suitable investment solutions;

  7. Some even assess your risk profile (through a questionnaire) and recommend a suitable asset allocation strategy;

  8. Recommend a portfolio/s of suitable mutual funds;

  9. Offers a reasonable level of customisation in portfolio construction; and

  10. Highly cost-efficient

If you have a basic understanding of financial investments and can't devote time, should consider a robust Robo-advisory platform backed by solid research, that even helps you with charting an optimal asset allocation to offer only Direct Plans to invest in mutual funds.

[Read: This is How a Smart Robo-Advisor can Help You Chart Your Asset Allocation...]

However, choosing the right advisory-platform is critical because there are Robo-advisory platforms burgeoning every day and the quality of the advice that's being offered should add value to your investment decisions.

Often the emphasis is on the aesthetics---the look and feel---instead of offering unbiased advice backed by thorough independent research.

Remember that if recommendations aren't backed by sound research processes, they are unlikely to live up to your expectations.

Here's some care you need to take when you choose a Robo-advisory platform:

​So, do not be penny wise and pound foolish when you invest your hard-earned money via a Robo-advisory platform. Remember that not all Robo advisory platforms are trustworthy though that offer free advice. In India, many of them are promoted by tech-startups that have no prior experience of mutual fund research and investing. While a few others are funded by brokerage houses or by a group of mutual fund intermediaries offering biased advice.

[Read: Beware Of Free Financial Advice, It Might Bomb Your Financial Wellbeing!]

You should avoid investing through all such platforms.

But then whom should you trust?

Any technologically sound Robo advisory platform founded by a company or a group of people with a proven track record in investment planning are unbiased and ethical, assess your risk profile before recommending mutual fund schemes, offer Direct Plans, and back recommendations with thorough research are good for you.

Do such platforms exist?

Yes, certainly they do. And PersonalFN Direct is one of them.

PersonalFN Direct will help you;

Investing through PersonalFN Direct is an easy 5-step process...

  1. Complete the registration

  2. Submit necessary documents to activate your investment account

  3. Assess your risk profile

  4. Get a recommended portfolio based on your inputs

  5. Invest with a single click

What are you waiting for?

Click here today to embark upon a journey to financial freedom!

Happy Investing!

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