Invest in Mutual Funds Through FreeCharge
FreeCharge is a digital wallet and payment mode operated and owned by Snapdeal, India’s one of the foremost online shopping portal. Now, in the recent spike in the use of these digital modes of payments, FreeCharge has made a crucial decision which will enable its subscribers to pay for mutual funds through this payment mode. FreeCharge has signed a MoU with the Mututal Funds owned by Reliance and has launched this offer through which the FreeCharge customers can easily invest money in mutual funds, through FreeCharge. This step is expected to give tough competition to FreeCharge’s other rivals such as Mobikwik, PayTM, etc.
Advantage of investing in Reliance Mutual funds through FreeCharge
Below are some of the advantages of investing your wealth in mutual funds through FreeCharge to get maximum returns of your deposits:
- Traditional deposit machineries such as recurring or fixed deposits provide low returns compared to the mutual funds. One can utilize their idle money in mutual funds to get returns of much higher rates. FreeCharge will be providing up to 8 per cent yearly for such deposits in mutual funds.
- The investments will be for a very short period of time and there will be long no lock-in period applied. Short term investments in mutual funds leads to growth of invested amount at faster rate. This also cuts the chances of risks which are common in mutual fund investments provided in long term schemes by several big companies.
- Making mutual fund investment through FreeCharge will help the investors to keep their money in liquid state and they may withdraw it whenever needed. Liquidity aspect in the FreeCharge operated mutual fund scheme will be a major attraction for those who need instant cash from their deposited funds.
- FreeCharge will only encourage its customers to invest in those bonds which have very low or moderate risk factors involved so that the investors can get up to 8 per cent per annum of in return.
Linking the bank accounts with mutual fund accounts of FreeCharge
FreeCharge has also announced the concept of linking the bank accounts with the mutual fund accounts for smooth deposits and withdrawal. Now customers can link their savings or current bank accounts with the MF accounts opened through FreeCharge portal for easy transfer of money or to withdraw money at ease. This will be done by collecting the KYC data from the customer with details such a Aadhar card, PAN card, etc. Mobile number will also be registered so that the customer will get regular updates of all transactions.
Below are some terms and conditions of the FreeCharge mutual fund investments
The registration charges to open mutual fund is Rs. 500 which will be for new investors. After this first subscription, they can make investment of minimum of Rs. 100 afterwards. However, FreeCharge will not charge any transaction fee from its mutual funds subscribers. Investors can easily deposit and withdraw money instantly to mutual fund accounts without any transaction charge or hassle. The investment will have total liquidity and can be withdrawn at any point of time. FreeCharge has promised to provide returns of up to 8 % p.a. on these investments. The only document needed is PAN card of the subscriber to open mutual fund account. However, if a customer has never invested in mutual funds in the past, then his/her Aadhar card is also required.
Points to be noted before investing
As mutual funds are always attached to their share of market risks, so it will be wise to invest in any scheme by studying their past records and having little knowledge of current market. There are several other companies which provide mutual fund investment opportunities. But with FreeCharge one can forget the concept of lock-in period and have complete liquidity of their funds. With smarter returns, compared to the fixed deposits, they can grow their money at up to 8 per cent p.a.