Is Sharekhan Good for Investing in Mutual Funds?
As a Director at Sharekhan, I have a positive view on the platform for mutual fund (MF) investments. Sharekhan offers several compelling reasons why investors might consider using their services. In this article, I will outline six key reasons to invest in mutual funds through Sharekhan, along with some additional considerations and expert advice.
Why Use Sharekhan for Mutual Fund Investments?
1. Open Architecture Approach
Sharekhan's open architecture approach is one of its strongest features. It offers access to more than 30 Asset Management Companies (AMCs), allowing you to choose from a wide range of mutual funds. This flexibility ensures that you can invest in the funds that best align with your financial goals and risk tolerance.
2. Rigorous Fund Selection Process
Sharekhan employs a strict and selective process to curate a list of "Funds We Like." These funds are selected by the research team using a quantitative and qualitative approach. Out of approximately 1,000 different funds, only around 100 are approved for investment. This process ensures a high standard of quality in the mutual funds you can choose from.
3. Expert Guidance
Sharekhan offers the support of mutual funds specialists and investment specialists. These experts can guide you over the phone or through virtual conferences, providing support and answering your questions. This service is particularly valuable for those who prefer a personal touch during their investment journey.
4. User-Friendly Technology
The Sharekhan app is highly efficient and user-friendly, with over 2.5 million downloads to date. Its website is also well-structured, providing a seamless experience for investors. Sharekhan's branches are available in the top 90 cities of the country, making it accessible to a wide range of investors.
5. Strong Parent Company Support
Sharekhan is a subsidiary of BNP Paribas, a leading European bank. In 2019, BNP Paribas reported a net income of EUR 8.17 billion, with net income of over 65,000 cr (approximately EUR 817 million). This strong parent company support ensures robust financial stability and reliability for investors.
6. Commission-Based Services
It's important to understand that Sharekhan, like any broker, earns a commission for selling mutual funds. However, this commission should be seen as part of the comprehensive service they offer. While anyone can sell mutual funds, an advisor helps you understand the significance of "why you are investing." A professional advisor can aid you in aligning your investments with your personal financial goals, understanding risk, and creating a well-diversified portfolio.
Professional Advice for Investors
If you are seriously interested in investing, consider consulting an independent financial advisor. An advisor will listen to your needs, provide guidance tailored to your goals, and help you manage your investments over the long term. They will also monitor your portfolio, advise on rebalancing, and assist during various market cycles.
While investing through mutual fund portals offers a convenient and standardized approach, it may not be as customized as working with a dedicated advisor. Additionally, mutual fund portals often do not provide regular portfolio monitoring or advisory services, such as re-balancing or exit strategy recommendations. A dedicated advisor can offer a more personalized and tailored investment plan based on your individual requirements.
For more information, please contact Sharekhan at 91 85878 67779. They can provide you with detailed guidance on their services and how to best utilize them for your investment needs.