Read this before investing through apps like PhonePe

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Deal Cadet
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Read this before investing through apps like PhonePe
Deal Expired

Hello, friends these days I am seeing posts like Phonepe offering tax-saving funds and liquid funds. Phonepe is offering regular plans in tax saving plan, I myself have verified now, their liquid funds will mostly be regular funds too, though I could not see liquid fund option in my app.
Every mutual fund has a regular plan and a direct plan. AMC charges a percentage called expense ratio for maintaining and managing all the expenses. Regular plans have a higher expense ratio usually 1-2% than direct plans.
For example in the case of Aditya Birla Sun Life Tax Relief 96 fund, which is one of the funds offered by Phonepe under tax saving plans, the regular plan has an expense ratio of 1.97%, whereas the direct plan of the same fund has an expense ratio of 1.06%. This 1-2% can make a huge difference in the long run, because of the compounding effect.

Let us say for the last 3 years if you have done a monthly SIP of 10,000 in regular plan of Aditya Birla Sun Life Tax Relief 96 fund, it would have grown to 3.86 lakhs, whereas the direct plan of the same fund would have given you 3.92 lakhs.

If you can’t select your own funds, then you can rely on apps like Kuvera and Goalwise who offer fund recommendations for various goals like tax saving, emergency funds, long term plans like buying house and etc.. based on research and they even post their performance every year like this https://www.goalwise.com/blog/goalwise-performa...
My personal favorite is Goalwise, you can ping me for referral for both Kuvera and Goalwise. Paytm also offers direct plans but these sites got more features, some of them are paid on Kuvera, while Goalwise features are completely free.

If you want to learn how to manage personal finance freefincal is a wonderful website and there are many posts on how to balance equity debt ratio and all.

8 Comments  |  
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Deal Cadet
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What do you think about Piggy?

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Deal Cadet
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Piggy provides direct plans too. But I am not able to see any features offered by that app. For example, Goalwise offers long term tax gains harvesting( helping us to save 10% tax up to 1,00,000 after we getting gains ), glide path, redeeming tax-free and exit load free units, etc and rebalancing. Piggy seems to offer these services through Piggy premier which seems to based on fee. And how actually piggy selects funds? Goalwise wrote about their method which is backed by data and their team also invests in those funds itself and they publish their portfolios on the website. So Goalwise scores over Piggy.

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Deal Cadet
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I am not sure how far he is correct, they might have just shown by rounding-off in his dashboard for simplicity purposes. The entire would be clear when he checks his statement that he gets from CAMS or AMC. I am no way supporting Paytm, but I don’t think Paytm has any role in allocating funds.

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DealBroker23 wrote:

read this – After this post my trust for paytm money decreased https://qr.ae/...vH

I am not sure how far he is correct, they might have just shown units by rounding-off in his dashboard for simplicity purposes. The entire picture would be clear when he checks his statement that he gets from CAMS or AMC. I am no way supporting Paytm here, but I don’t think Paytm has any role in allocating funds.

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Critic
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Instead of posting on quora,he should have emailed sebi if he was so confident of his analysis.

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neo13 wrote:

I am not sure how far he is correct, they might have just shown units by rounding-off in his dashboard for simplicity purposes. The entire picture would be clear when he checks his statement that he gets from CAMS or AMC. I am no way supporting Paytm here, but I don’t think Paytm has any role in allocating funds.

Why invest thru the likes of PayTM or PhonePe when you can directly invest thru CAMS? No intermediary involved… sad toungueout

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Deal Cadet
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yeah CAMS is also a good option, but these platforms are offering good services for free, like managing family accounts, helping while redemption, etc., so it depends on what services we want.

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