After MF Utility, Invezta is now the second direct mutual fund investment portal open for business. I think it is also the first private portal live.
What would it cost you?
A flat fee of Rs. 79 a month to be paid in advance for a year for investing alone.
A flat fee of Rs. 109 a month with same conditions as above for investing+ robo-advisory (personalized recommendations)
Investments up to 50K are free. That is first 50K is free.
You can reduce this fee by referring the platform to others (see website for details)
What is the registration process?
For those with a valid KYC, it is a fairly simple process of providing relevant personal information, nominee details with bank details and image of a cancelled cheque. I got myself an account and it took not more than a few minutes.
A demo is available. Here are some screenshots:
For new mutual fund investors, invezta is a pretty good fit. One can buy new direct mutual fund units from 11 AMCs (as of now) via SIP or lump sum and sell them.
As of now we cannot sell our existing units via Invezta or buy more units in the same folio. The reason for that is, Invezta (unlike MFU) is a third party. They have a ARN code meant for registered investment advisers. They will not earn anything from our transactions as these are direct mutual fund plans.
However, in order for us to sell our existing units via Invezta, the portfolio has to be tagged to their RIA code. This means, we will have to give consent for such an association. Sharad Singh (CEO, Invezta) tells me that clarity will soon emerge on this aspect and this should be possible.
Extract from their FAQ:
How Can I transfer my existing holdings?
We are creating a process for the same.
However currently, if you are invested in Regular Plans of mutual funds, you can redeem your holdings with a broker / advisors and then do a fresh investments on Invezta. if you invest directly with AMCs and want to transfer your holdings to Invezta, you can raise a request either by
Writing to us at “support@Invezta.com” OR
Raise a ticket online
Also, If we want Invezta to track the health of our portfolio, we need to give then access to your account statement. In a regular fund, our distributor has this access by default (why I never understand!). When we go direct with AMCs (incl MFU), they do not have this access or rather do not need it!!
When we wish to invest via a third party, consent to feeds or account statement is necessary. SEBI has laid down a process for this along with AMFI.
Comparison with MF Utility is inevitable!
For existing investors consolidation (if considered important) should be better with MF Utility and one can sell old units as well. However, one cannot register online (which is silly - a third party can do this, but AMCs can't!!)
The problem with MFU is that it, I am not sure if it has a carrot to evolve. AMCs do not want to antagonise distributors by promoting MFU among investors.
A third-party portal like Invezta has a lot of pressure and competition (portals like unovest, Bharosaclub, Oro wealth and e-commence sites) to perform.
All of them should have the same issue (RIA code tagged to folio) wrt existing folios.
Should you give this a try?
The registration process is way more simpler than MFU. The fee is flat and not dependent on portfolio size. This is crucial because if it is dependent on folio size it becomes similar to a regular mutual fund.
The fee is more than affordable. I admire the intelligence and skills of its CEO, Sharad Singh. So I think, for new (or practically new) mutual fund investors, this is a pretty good option.
Existing investors who wish to add more units to existing folios or sell them will have to wait for clarity to emerge as to how Invezta can handle such transactions. In the meantime, maybe new investors could be referred to the portal.
Now the challenges for Invezta is to ensure first impressions are good. Then word of mouth (ie Social medai) will do the rest.
For other details, consult their FAQ
As in any other portal there might be a hiccup or two. If so please bring it to the attention of Sharad Singh via Facebook group Asan Ideas for Wealth or you can leave a comment here. Knowing Sharad he will sort it out pretty fast.
Note: I am writing this post on my own accord. I have no connections with Invezta or Sharad Singh.
I have said it once, I will say it again: 2016 is the year of the direct mutual fund