Over the last couple of years, the mutual fund industry has experienced a revolutionary change. The implementation of technology in the mutual fund industry has not only changed the process of investing but also magnified the investment market. These offer investors with a plethora of options to make their investment more productive.
The leverage of technology has widened the scope of investment in mutual fund and has thus, shaped the market to be more organised and investment-friendly. Besides, the implementation of tools like SIP return calculator has also made the calculation process easier. Here, five ways are given below in which technology can help you in shaping the mutual fund investment process.
5 Ways in Which Technology is Shaping The Mutual Fund Investment Process
1. Reduces Paperwork
Gone are the days when you need to wade through a lot of paperwork in order to invest in a mutual fund. The application of modern software and technologies has made the investment process a lot easier. Investors, nowadays, can make a productive investment and that also within a short stint of time. With the implementation of new technology, the overall process of investment has become a lot faster – be it requesting a quotation, fund management, transaction process or disbursement of the fund. These have not only revolutionised the overall mutual fund process but has attracted a large number of investors to invest in mutual fund due to the simplicity of the process.
2. Ease the Transaction Process
The implementation of technology has made mutual funds investment easier. For the first time, investors investing in the mutual fund do not have to face a lot of issues regarding the KYC process or registration. The process of KYC verification is done online following a simple OTP based step. Moreover, SEBI has also paved the way for the future growth of the mutual fund by permitting the distributors to transact their investment on Non-Demat units. The implementation of this approach has given an entirely new business model which has not only reduced the paperwork but also make the transaction process a lot easier. Even the diversification of fund in case of ELSS mutual fund has become a lot easier with the implementation of technology in the mutual fund.
3. Easier to Compare
Comparing different mutual fund schemes has become a lot easier with the implementation of technology in the process. It helps to check both the pros and cons before investing in any mutual fund scheme. You can also compare the return on investment and the interest rate. Earlier, it was difficult for investors to make a productive investment as most of the investors are not aware of the benefits and the risk associated in each of these schemes. Now, comparing different mutual fund schemes has not only given a better yield to investors but also helps the investors in having a better perspective on various investment plans. For example, every mutual fund SIP can be compared on the basis of invest & return amount, which can be easily estimated with the help of a sip return calculator.
4. Application of Online Calculators
The widespread use of the cost-effective technological tool in the mutual fund industry has helped the investors in comparing the various mutual fund schemes in an effective way. Investment tools like online EMI calculator, ELSS online calculator or SIP return calculator have made the process of comparison of different mutual fund schemes a lot easier. The sip return calculator helps to calculate return on investment in mutual funds, and similarly EMI & ELSS calculators respectively for EMIs & ELSS funds.
Sometimes, the investors find it difficult doing a complex calculation but using an online calculator can give a quick solution in no time. It also helps the investors to compare the various mutual fund scheme easily and also provides an accurate result to the investor. The only thing that you have to ensure that the inputs have been entered correctly.
5. Giving Investors More Information
The application of technology in the mutual fund has helped investors by providing them with relevant information regarding their queries. These days you will get a lot of websites which publishes articles on the latest technologies that are helping in shaping the mutual fund process. On one level, these articles not only provide investors with requisite information but they also offer in-depth knowledge about various mutual fund schemes. Not only articles but more information also in the form of returns, fund histories & performance, etc. Returns can be calculated using a sip return calculator, & fund performance can be looked into online on various portals. On another level, the implementation of the technology in the mutual fund industry provides greater transparency to the investors by giving them access to various investment reports. These help the investor in making potential gain by avoiding the risk that is involved in the process.
The Bottom Line
Technology is connecting more people to funding their investment in the mutual fund as the process has got a lot simpler. It has reduced the paperwork and has made the overall investment process a lot more convenient. However, one must be aware of the new legal regulation that is changing with the advancement in technology as it gives you a better insight into the investment process and also helps you to get better returns.
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Vipin is a Programmer who loves blogging and used to do research on new things. He loves to share those information through this blog. You can contact him via email [email protected]