ORO Wealth: Yet another Direct mutual fund investment portal!

Published: January 27, 2016 at 7:26 am

Last Updated on

It is raining direct mutual fund investment portals! First MF Utility Online platforn went live. Then we heard of Invezta, Unovest (launching soon), BharosaClub(open) and ORO Wealth (went live last week). More are in the works!!

Here are the details of ORO Wealth portal along a comparison of its features with MF Utility, Invezta and Bharosa Club.

Please note: This is provided by way of information only. I am not associated with any of these portals. My opinions about each of these portals are not biased in any way. Please do not subscribe to any portal unless you are sure it will be of use to you.

ORO Wealth operates via MF Utility. That is, a subscribers requires a valid common account number (CAN) from MF Utility. Bharosa Club also operates this way. My understanding is that both portals can get you a CAN number if you upload id proofs and courier a signed form.

Operating with a CAN enables an existing mutual fund investor to consolidate past holdings.

In response to my email, they said they went live last week and have about 500 subscribers registered.

Fees:

Since it is connected to MFU, you and transact in up to 12 mutual funds in one shot.

For each such transaction, you need to pay Rs. 50.

Buying is a different transaction from selling or switching (not possible directly from MFU).

For each SIP/STP/SWP (not yet in force) a fee of Rs 25 will be charged.

According to Taqiuddin (comment below)

According to ORO
Regarding SIP transactions, the charges of Rs 25 are for a monthly SIP mandate, that is we may add multiple funds in a monthly SIP mandate. So one would be paying Rs. 25 per month even if he is investing in 6 different mf’s in every transaction.

All transactions are free until 29th Feb. 2016.

Is this cheaper than Invezta where you need to pay Rs. 79 a month flat fee? Depends.

For those who wish to invest manually, two buys made on different dates will cost Rs. 100 a month. We cannot  always guarantee that we will make all transactions on the same day. For those who buy on dips, Invezta is cheaper.

ORO Wealth will soon be lauching robo-advisory services which will be have a separate fee.

They have a mutual fund screener which I dont think much of. It is quite crude. Hopefully it should improve.

Should you choose ORO Wealth?

New investors: I think Invezta is easier to get started for new investors who do not have a CAN.

If the investment size is low, once a month, with under 4 SIPS, then ORO Wealth is a bit cheaper than Invezta.

Why can’t I just get a CAN and invest free via MF Utility? Why not indeed!

Old Investors: The above question makes a lot of sense to old investors too.

The only add-on wrt Invezta and ORO Wealth is the robo advisory. I cannot comment on which is better and I think it is safe to assume that they are equally good until proven otherwise.

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MF Utility vs Invezta vs ORO Wealth vs Bharos Club vs Unovest!! (click to expand)

Direct-mutual-fund-investment-advisory-portals

Note 1: Bharosa Club requires a Rs. 100 set up fee  “and after April 2016 will charge 0.1 % of the AUM only if it crosses a lakh”

Note 2:  I keep forgetting that one can invest in direct plans of DSP Blackrock, ICICI, Birla, PPFAS & LnT MF through MyCAMS (thanks Anil Angadi – comment below)

My take:

New investors

If you require freedom to choose any direct fund from a single portal, use Invezta.

If you dont care, invest via AMCs directly.

If you require fund suggestions then pay for robo-advisory in Invezta.

Old investors

If you require freedom to choose any direct fund from a single portal, plus consolidation of old holdings, choose MF Utility. It is free and its efficiency will limit that of the other portals which depend on it (ORO, Bharosa, Unovest?)

If you dont care, invest via AMCs directly.

If you require fund suggestions check if robo-advisory fees alone can be paid in Invezta or ORO Weath (I dont know about this). This way you get automated advisory and can invest via MF Utility or via AMCs. Of course, this applies to new investors too. My guess is that this will not be possible 🙂

If you are not certain and would like to wait and watch, invest via AMCs directly.

Please note: I have done my best to ensure the information provided above is correct. Please check with the individual portal before deciding. Will update this post as and when more details become available.

Links to Direct mutual fund portals:

MF Utility

Invezta

ORO Wealth

Bharosa Club

Unovest

What do you think? Will invest in such a portal?

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