Hey there, so you’ve heard about mutual funds and want to start investing, right? But here’s the thing: you don’t want to pay unnecessary commissions to agents or brokers when you can do it yourself and keep more of your returns. Smart thinking.
That’s exactly where direct mutual fund apps come in. And trust me, once you understand how easy it is to buy direct mutual funds online in India, you’ll wonder why you didn’t start sooner.
Let me walk you through everything, and I mean everything you need to know. Think of this as your friendly neighbourhood guide to getting started with direct mutual fund investing, minus the jargon and confusion.
Why Should You Care About Direct Mutual Fund Apps?
Before we dive into which direct mutual fund app you should use, let’s talk about why this matters.
Imagine you’re investing ₹10,000 every month through a SIP (Systematic Investment Plan). Over 20 years, with regular mutual funds, you might pay around 1.5-2% in commissions and fees. That doesn’t sound like much, right?
Wrong.
That “small” percentage could cost you lakhs of rupees! With direct plans available through direct mutual fund apps, you pay 0.5-1% less in expenses. Over 20 years, that difference could mean an extra ₹8-12 lakhs in your pocket. Yes, you read that right – lakhs!
The Real Cost of Regular Plans vs. Direct Plans
Let’s break this down with a real example:
| Investment Details | Regular Plan | Direct Plan | Your Savings |
| Monthly SIP | ₹10,000 | ₹10,000 | – |
| Time Period | 20 years | 20 years | – |
| Expected Return | 11% | 12% | – |
| Final Amount | ₹98.5 lakhs | ₹1.1 crores | ₹11.5 lakhs more! |
See that? Just by choosing to buy direct mutual funds online in India instead of going through an agent, you could retire with over ₹11 lakhs extra. That’s a decent car or a substantial down payment on a home!
What Exactly Are Direct Mutual Fund Apps?
Okay, let’s get the basics clear.
Direct mutual fund apps are digital platforms that let you invest directly in mutual funds without any intermediary – no agent, no broker, no commission-eating middleman. You connect straight to the Asset Management Companies (AMCs) that manage the funds.
Think of it like this: buying mutual funds through an agent is like buying a phone from a retailer who adds their markup. Using a direct mutual fund app is like buying straight from the manufacturer’s website at a lower price.
How They Save You Money
When you invest through a broker or distributor:
- They earn a commission (usually 0.5-1% of your investment annually)
- This commission comes from YOUR returns
- The AMC charges a higher “expense ratio” to cover these commissions
When you use direct mutual fund apps:
- Zero commission to anyone
- Lower expense ratio (0.5-1% less)
- All those savings stay in YOUR investment
- Your money compounds faster and grows bigger
Top 10 Direct Mutual Fund Apps in India (Comprehensive Analysis)
Alright, here’s what you came for: the best platforms to buy direct mutual funds online in India. I’ve personally analysed each of these, and I’ll tell you exactly what makes them great (and where they fall short).
1. Groww – Best for Absolute Beginners
Why it’s awesome: If you’ve never invested before and the whole world of mutual funds scares you a bit, Groww is your best friend. It’s like having a patient teacher who explains everything in simple Hindi and English.
Key Features:
- Completely FREE demat account (₹0 annual charges)
- Super clean interface – even your parents can use it
- 24×7 customer support (actually helpful, not robots)
- Zero commission on all direct mutual fund plans
- Can start SIP with just ₹100
- Built-in calculators (SIP, lump sum, retirement)
Who should use it: First-time investors, students, and anyone who wants simplicity over fancy features.
The catch: It’s so simple that advanced investors might find it limiting. No advanced analytics or research tools.
My take: If you’re reading this guide, Groww is probably perfect for you. Over 1 crore Indians can’t be wrong.
2. Zerodha Coin – Best for Serious Investors
Why it stands out: Zerodha is India’s largest stockbroker, and Coin is their mutual fund platform. It’s no-nonsense, transparent, and built for people who want complete control.
Key Features:
- Truly ZERO commission (Zerodha doesn’t earn anything from your MF investments)
- Invest in 3,000+ direct mutual funds
- SIP autopay through UPI
- Systematic Withdrawal Plans (SWP) are available
- Console dashboard – see your entire financial life in one place
- Free access to premium tools (Sensibull, Streak, Tijori)
Who should use it: Investors who also trade stocks, want detailed portfolio analytics, or prefer a platform that doesn’t “gamify” investing.
The catch: You need a Zerodha account (which requires a ₹200-300 one-time account opening fee for trading, though Coin itself is free).
My take: If you’re serious about building wealth and want a platform that respects your intelligence, this is it. Over ₹70,000 crores invested through Coin tells you it’s trusted.
3. Kuvera – Best Free Alternative with All Features
Why I love it: Kuvera gives you EVERYTHING for free. No hidden charges, no account fees, no funny business. It’s like the generous friend who shares everything.
Key Features:
- 100% free – no charges ever
- 5,000+ direct mutual fund schemes
- Goal-based investing (house, car, retirement, education)
- Family account management (manage parents’/spouse’s investments)
- Tax harvesting tools
- Import existing portfolios from anywhere
- Emergency fund in liquid funds (withdraw in 30 minutes)
Who should use it: Anyone who wants premium features without paying a rupee, families pooling investments, and goal-oriented planners.
The catch: The interface isn’t as polished as Groww, takes a bit of getting used to.
My take: Honestly? This is probably the most underrated direct mutual fund app in India. Try it.
4. Paytm Money – Best for UPI Lovers
Why it’s convenient: You’re already using Paytm for everything else, right? Their mutual fund platform integrates seamlessly with your UPI payments.
Key Features:
- Super quick onboarding (literally 3 minutes)
- UPI AutoPay for SIPs (set it and forget it)
- Clean, modern interface
- Pre-apply for IPOs
- Stock investing + F&O on the same app
- Real-time portfolio tracking
Who should use it: People who want one app for everything: payments, investments, stocks, IPOs.
The catch: While it’s good, it doesn’t excel at anything specific—Jack of all trades, master of none.
My take: Perfect if you hate juggling multiple apps. Not so great if you want deep analysis tools.
5. ET Money – Best for Expert Guidance
Why it’s unique: ET Money gives you the best of both worlds – direct mutual funds (no commission) PLUS expert recommendations and tax-saving tools.
Key Features:
- ET Money Genius, AI-powered investment advisor
- Personalised fund recommendations
- Tax-saving opportunities (save up to ₹78,000 annually)
- Fixed deposit comparison and booking
- NPS investments
- Expense tracking tools
Who should use it: Investors who want some hand-holding but don’t want to pay commission, tax-conscious investors.
The catch: Some premium features require a paid subscription (though basic MF investing is free).
My take: Great middle ground between DIY apps and robo-advisors.
6. INDmoney – Best for International Investors
Why it’s different: Want to invest in Tesla, Apple, or Amazon while also buying Indian mutual funds? INDmoney does it all.
Key Features:
- 1,600+ direct mutual fund plans
- Invest in US stocks (fractional shares from ₹100)
- Track entire net worth in one place (accounts, cards, investments)
- Zero platform fees
- Real-time profit/loss tracking
- SIP in US stocks too!
Who should use it: Young investors interested in global diversification, NRIs, and tech-savvy millennials.
The catch: It can feel overwhelming with too many features if you just want simple mutual fund investing.
My take: Amazing app if you think globally. Over 1.6 crore users are already using it.
7. Scripbox – Best for Long-term Wealth Building
Why it’s trustworthy: Scripbox has been around since 2012 (that’s like 100 years in startup time) and manages ₹18,000+ crores for Indian families.
Key Features:
- Proprietary fund ranking algorithm
- Curated fund recommendations (not overwhelming choice)
- Smart withdrawal strategies (tax-optimised)
- Family investment management
- Regular portfolio health checkups
- Excellent educational content
Who should use it: Conservative investors who want expert curation, families planning for long-term goals.
The catch: Less choice (they curate funds), not for active traders.
My take: If you want someone to tell you “invest here and relax,” Scripbox is perfect.
8. Angel One – Best for Trading + Investing Combo
Why it’s powerful: With 3+ crore users and 25 years of experience, Angel One is a beast. It’s for people who want EVERYTHING financial in one app.
Key Features:
- 5,000+ direct mutual funds
- Free demat account
- Stocks, F&O, commodities, bonds, US stocks
- Loans up to ₹10 lakh
- Digital insurance
- ARQ – AI investment engine
- Smart orders (GTT, cover, robo orders)
Who should use it: Active traders who also invest in mutual funds and comprehensive financial apps.
The catch: It can feel cluttered with so many options.
My take: Overkill for mutual fund-only investors, perfect for serious market participants.
9. 5paisa – Best Budget Platform
Why it’s affordable: Flat ₹20 brokerage on trades + completely free mutual fund investing. Plus special offers for women investors!
Key Features:
- 4,000+ mutual fund schemes
- Start SIP with just ₹100
- Zero brokerage for 30 days (new users)
- Stock SIP available
- Algo trading
- Margin at 0% interest
- Commodities and currencies trading
Who should use it: Cost-conscious investors, women investors (special benefits), and algo traders.
The catch: The User interface could be better.
My take: Great value for money, especially if you trade occasionally.
10. HDFC Mutual Fund App – Best for HDFC MF Investors
Why it exists: If you specifically want to invest in HDFC mutual funds directly, their official app is optimised for exactly that.
Key Features:
- Aadhaar-based e-KYC (super fast)
- 4-digit MPIN login
- E-Cart feature (bundle multiple SIPs, one payment)
- Favourites section for frequent schemes
- ELSS tax-saving funds
- Direct bank integration
Who should use it: Investors who’ve researched and specifically want HDFC schemes.
The catch: Limited to HDFC mutual funds only. Not a comprehensive platform.
My take: Single-AMC platforms are dying. Use multi-AMC apps instead for flexibility.
However, you can also invest in mutual funds directly without a broker and reduce your commission.
How to Buy Direct Mutual Funds Online in India: Step-by-Step
Alright, you’ve chosen your direct mutual fund app. Now what? Let me walk you through the exact process. Don’t worry, it’s easier than ordering food online.
Step 1: Complete Your KYC (One-Time, 10 Minutes)
KYC stands for “Know Your Customer” – it’s a regulatory requirement. Here’s what you need:
Documents Required:
- PAN Card (mandatory)
- Aadhaar Card (for e-KYC)
- Bank account details (cancelled cheque or bank statement)
- Passport-size photo
- Your signature
How to do it:
- Download your chosen app
- Click “Start Investing” or “Sign Up”
- Enter your PAN number
- Upload Aadhaar and other documents
- Complete video KYC (just follow on-screen instructions)
- Done! Usually approved in 24-48 hours
Pro tip: Do your KYC once on any platform, and it’s valid everywhere. KYC done with Groww? You can use Zerodha immediately.
Step 2: Link Your Bank Account
This is crucial for moving money in and out of your investments.
- Go to the “Bank Account” section in your app
- Enter account number and IFSC code
- Upload a cancelled cheque or bank statement
- Verification happens in 1-2 days
Pro tip: Link your primary salary account for smooth auto-debits for SIPs.
Step 3: Choose Your Mutual Fund
Now the fun part! But wait – don’t just pick randomly. Here’s how to choose:
For Beginners:
- Look for “Index Funds” or “Large Cap Funds” (lower risk)
- Check the fund’s 5-year returns
- See expense ratio (should be under 1% for direct plans)
- Read the fund’s objective – does it match your goal?
Quick Selection Guide:
- Short-term goal (1-3 years): Debt funds or Liquid funds
- Medium-term (3-5 years): Balanced/Hybrid funds
- Long-term (5+ years): Equity funds (Large cap, Mid cap, Index funds)
- Tax saving: ELSS funds (80C benefits)
Step 4: Decide SIP or Lump sum
SIP (Systematic Investment Plan):
- Invest a fixed amount monthly (say ₹1,000 every month)
- Best for salaried people
- Reduces risk through rupee cost averaging
- Can start with as little as ₹100
Lumpsum:
- Invest one big amount (say ₹50,000 at once)
- Good if you have a bonus or inheritance
- Better when markets are down
- Requires market timing skills
My recommendation: Start with SIP. Even Warren Buffett recommends regular investing
Step 5: Make Payment and Confirm
Payment Options:
- UPI (instant, most convenient)
- Net banking
- Auto-debit (for SIPs, set it and forget it)
- NEFT/RTGS
- Select your fund
- Choose SIP or lump sum
- Enter amount
- Select payment method
- Authorize payment
- Done! You’re now an investor
Confirmation:
- You’ll get SMS and email confirmation
- Units will be allotted based on the next available NAV (Net Asset Value)
- Usually reflected in 2-3 working days
Step 6: Track and Manage
What to track:
- Your total investment value
- Current returns (percentage and absolute)
- Individual fund performance
- Asset allocation
When to review:
- Check monthly, but don’t obsess
- Rebalance once a year
- Stick to your plan through market ups and downs
Pro tip: Set up alerts for major portfolio changes, but avoid checking daily. Long-term investing requires patience.
Direct Mutual Funds vs. Regular Mutual Funds: The Ultimate Showdown
Let me settle this once and for all. Here’s a detailed comparison:
| Feature | Direct Mutual Funds | Regular Mutual Funds |
| How to Buy | Direct mutual fund apps, AMC websites, RTAs | Banks, brokers, and financial advisors |
| Commission | ZERO | 0.5-1% annually |
| Expense Ratio | Lower (0.5-1% for equity funds) | Higher (1.5-2.5% for equity funds) |
| Returns | Higher (more money stays invested) | Lower (commission eats returns) |
| Advice | Self-research or robo-advisory | Human advisor guidance |
| Convenience | Apps make it super easy | Need to contact advisor |
| Transparency | Complete (see everything online) | Depends on advisor |
| Control | Full control over investments | Advisor-dependent |
| Best For | DIY investors, long-term wealth builders | Those needing hand-holding, the elderly |
The Verdict: Unless you genuinely need personal financial planning (not just MF advice), direct mutual funds through apps are the clear winner.
Real Investor Example:
Raj’s Story: Raj invested ₹5,000/month for 15 years.
Through an agent (Regular plan):
- Total invested: ₹9 lakhs
- Final value: ₹32.5 lakhs
- Returns: 12.5%
Through the direct mutual fund app:
- Total invested: ₹9 lakhs
- Final value: ₹36.8 lakhs
- Returns: 13.5%
Raj saved ₹4.3 lakhs by simply using a direct mutual fund app instead of an agent. That’s a family vacation to Europe.
Common Mistakes to Avoid When You Buy Direct Mutual Funds Online in India
Look, I’ve seen people make these mistakes, and I don’t want you to be one of them:
Mistake #1: Picking Funds Based Only on Past Returns
“This fund gave 45% returns last year – I should invest
Why it’s wrong: Past performance doesn’t guarantee future results. A fund that’s a rockstar this year could flop next year.
Do this instead: Look at 5-year and 10-year consistent performance, not just recent spikes.
Mistake #2: Over-Diversification
“I’ll invest in 15 different mutual funds to be safe
Why it’s wrong: Too many funds become impossible to track and often overlap in holdings.
Do this instead: 4-6 well-chosen funds across different categories are enough.
Mistake #3: Panic Selling During Market Crashes
“Market dropped 10%! I need to sell everything NOW.
Why it’s wrong: Markets go through cycles. Selling low locks in losses.
Do this instead: Stay calm. Market crashes are the best time to BUY more, not sell.
Mistake #4: Not Reading Fund Objectives
“Index Fund, Mid Cap, Small Cap – aren’t they all the same?
Why it’s wrong: Different funds have different risk levels and objectives.
Do this instead: Understand what you’re buying. Index funds are low-risk; small-cap funds are high-risk.
Mistake #5: Ignoring Expense Ratios
“0.5% difference doesn’t matter much, right?”
Why it’s wrong: Over 20 years, that 0.5% compounds to lakhs of rupees.
Do this instead: Always check expense ratios. Direct plans have lower ratios, which is why we use direct mutual fund apps.
Mistake #6: Not Setting Clear Goals
“I’ll just invest ₹2,000 every month and see what happens.”
Why it’s wrong: Without goals, you’ll likely quit during tough times or withdraw prematurely.
Do this instead: Define clear goals – “₹50 lakhs for child’s education in 15 years” gives you purpose.
Mistake #7: Checking Portfolio Daily
“Let me see how my investments are doing… again… for the 5th time today.”
Why it’s wrong: Daily fluctuations cause anxiety and lead to impulsive decisions.
Do this instead: Check monthly at most. Invest for the long term, not day trading.
Which Direct Mutual Fund App Should YOU Choose?
Okay, decision time. Here’s my personalised recommendation based on your profile:
If you’re a complete beginner:
→ Groww (hands down, no competition)
If you want zero fees and maximum features:
→ Kuvera (seriously underrated!)
If you trade stocks occasionally:
→ Zerodha Coin (best integration)
If you want expert recommendations:
→ ET Money (balanced approach)
If you’re interested in US stocks too:
→ INDmoney (global diversification)
If you’re building long-term family wealth:
→ Scripbox (curated, trusted)
If you want everything in one app:
→ Paytm Money or Angel One (convenience)
If you’re cost-conscious:
→ 5paisa (budget-friendly)
My personal top 3:
- Groww (for simplicity)
- Zerodha Coin (for zero-BS approach)
- Kuvera (for features without cost)
Pro move: Use 2 apps! One primary (like Groww) for regular investing, one secondary (like INDmoney) for portfolio tracking and analysis.
The selection of apps comes to an end, and now, if you want to invest in top mutual funds, don’t worry, we’ve got everything for you.
FAQs: Everything Else You Wanted to Ask
Q1: Is it safe to invest through direct mutual fund apps?
Absolutely! These apps are SEBI-registered and use bank-grade security. Your money goes directly to AMCs, not to the app. They’re just facilitators.
Think of it like this: booking a flight on MakeMyTrip doesn’t mean MakeMyTrip is flying the plane. The airline does. Similarly, apps just help you invest – AMCs handle your money.
Q2: Can I lose money in direct mutual funds?
Yes, mutual funds are market-linked investments. You can lose money, especially in the short term. But historically, equity mutual funds have given 12-15% annual returns over 10+ years, beating inflation and FDs.
Rule of thumb: Don’t invest money you’ll need in the next 3-5 years.
Q3: How much should I invest?
Start small! Even ₹500/month is a great beginning. Once you’re comfortable, increase gradually.
General formula:
- Save 50% of income for essentials
- 30% for wants
- 20% for investments (including mutual funds)
Q4: Can I switch from regular to direct plans?
Yes! Most direct mutual fund apps have a “Switch to Direct” feature. It’s usually a few clicks.
Note: This is treated as redemption + fresh investment, so there might be tax implications if you’ve made gains.
Q5: How long does it take to see returns?
Depends on your goals:
- Short-term (1-3 years): Use debt funds, expect 6-8% returns
- Medium-term (3-5 years): Hybrid funds, expect 8-10% returns
- Long-term (5+ years): Equity funds, expect 12-15% returns
Markets fluctuate, so don’t judge performance in the first 2-3 years.
Q6: Do I need a Demat account for mutual funds?
Nope, that’s the beauty of direct mutual fund apps: you don’t need a Demat account. Just KYC is enough.
(Though some apps like Zerodha and Groww offer optional Demat for stocks if you want.)
Q7: What’s the minimum investment?
Most apps let you start SIP with just ₹100! Lump sum minimums are usually ₹500-1,000.
Q8: Can NRIs invest?
Yes, but with some restrictions. Most direct mutual fund apps support NRI investments, but you’ll need:
- NRE/NRO bank account
- Overseas address proof
- Different KYC process
Check with your chosen app for specific requirements.
Q9: How do I withdraw money?
Super simple:
- Open your app
- Select the fund you want to redeem
- Choose “Partial Withdrawal” or “Full Redemption”
- Enter units or amount
- Money hits your bank account in 2-3 working days
Q10: Will I get taxed on returns?
Yes, but it’s favourable:
Equity Funds:
- Long-term (> 1 year): 12.5% tax on gains above ₹1.25 lakh/year
- Short-term (< 1 year): 20% tax
Debt Funds:
- Now taxed as per your income tax slab (recent rule change)
Pro tip: ELSS funds offer tax deduction under Section 80C up to ₹1.5 lakh!
Bonus: Tools and Resources
Free Calculators to Use:
- SIP Calculator: See how much your monthly investment will grow
- Lumpsum Calculator: Calculate one-time investment returns
- Step-up SIP Calculator: Increase SIP by 10% every year
- Tax Saving Calculator: Check your 80C deductions
Where to Learn More:
- Investyadnya (YouTube) – Hindi finance education
- Zerodha Varsity – Comprehensive investment courses
- Economic Times – Market news
- Value Research – Fund research and ratings
- r/IndiaInvestments – Reddit community
Apps to Track Portfolio:
- INDmoney – All investments in one place
- Money Control – Market news + portfolio tracker
- MyCAMS/KFinKart – Official RTA apps
Your Action Plan: Next 30 Days
Week 1:
- Research and choose your direct mutual fund app
- Complete KYC
- Read about 3 fund categories you’re interested in
Week 2:
- Link your bank account
- Set a realistic monthly SIP amount
- Choose 1-2 funds to start with
Week 3:
- Start your first SIP
- Set up auto-debit so you don’t forget
- Tell one friend about direct mutual funds (spread the knowledge!)
Week 4:
- Review your investment once
- Read about one new fund category
- Plan to increase SIP by 10% next year
After 6 months:
- Check your portfolio
- See your returns (don’t panic if negative, markets fluctuate)
- Consider adding one more fund
- Pat yourself on the back, you’re now an investor.
Final Thoughts
Look, investing through direct mutual fund apps isn’t just about saving some commission. It’s about taking control of your financial future. It’s about not depending on agents who may or may not have your best interests at heart.
When you buy direct mutual funds online in India, you’re making a statement: “I’m smart enough to handle my own money, and I want every rupee working for ME.”
Here’s what I want you to do right now:
- Pick ONE app from the list above (if you can’t decide, go with Groww)
- Download it and complete KYC this weekend
- Start with a small SIP – even ₹500/month is perfect
- Set it on autopilot and let compound interest do its magic
- Learn as you go – you don’t need to know everything today
The best time to start investing was 10 years ago. The second-best time is RIGHT NOW.
Remember: You don’t need to be rich to start investing. You need to start investing to become rich.
Your future self will thank you,
Got questions? Drop them in the comments, and I’ll answer every single one. Now stop reading and start DOING!
Disclaimer: This article is for educational purposes only. Mutual fund investments are subject to market risks. Please read all scheme-related documents carefully before investing. Past performance is not an indicator of future returns.
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