If you are investing through Mobile App, then be aware that these are some risks

 

As the Internet and smartphone penetration has increased in the general public, it has become easier to invest in mutual funds and stock markets. Currently, a lot of investment apps and online platforms have come up where investors can easily invest money. Today's fast no-your-customer (KYC) process is another good feature. Many financial apps are also giving tutorials to investors where they have video interactions or phone calls with fund managers. Now the mobile app offers corporate fixed deposits and even equity shares. Along with all these features, there are risks in investing through mobile apps, which the investor should focus on. Let's know about some such risks.

 

It is very important to seek information and advice. If investors are investing in mutual funds etc. for the first time from such an app or are in their initial investment years, then the investor needs advice and guidance from anyone. Although many apps offer a lot of reading materials and investment guides, you should not hurry under any circumstances. This may cause the investor to lose more than the profit.

 

Some investing apps have their own hidden agendas. If the app can have a tie-up with any mutual fund company and that app will also give you a good idea of the same mutual fund. This is not legally true, but some apps are resorting to this strategy. This can trick novice investors. This is a way to motivate the investor towards a fund.

 

There are several factors to be considered before an investor invests. Investment applications do not consider your debt, tax status, other investments etc. But the investor himself has to pay attention to these things. One thing and investing with a credit card is a very bad idea. Because this can greatly reduce the returns to the investor. You may also have to pay interest from the return that the investor will get.

 

Many investment apps introduced services during market booming conditions. So app users can get caught in a false sense of trust, as they will get only good returns on that app. While it is necessary to be prepared for future market fluctuations or any volatility. In such a situation, you can lose money by making bad investment decisions at bad times.

 

Investment applications often attempt to determine the risk-taking ability of investors through a questionnaire and algorithm. But this method is not completely correct. This will not allow investors to really know how much risk an investor can afford. Rather, you have to understand the risk factor with the help of a good advisor.