Neobank Fi Launches New Feature for Mutual Fund Investments

Neobank Fi has announced the launch of a new investment platform that will help users invest in mutual funds to grow their wealth. It will also launch its P2P investment platform in a few weeks which will offer users the opportunity to diversify their portfolio with annual returns of 9%, the firm said.

“The goal is to help users improve their finances by educating them about mutual funds and making investing fun rather than a daunting task,” the financial app said.

On the Fi app, in a tab called “Mutual Funds“, users are provided with investment information and mutual fund options from a range of AMCs. Users can choose them based on their financial goals and risk appetite. Information such as net asset value, past performance, etc. are presented in an easy to understand, jargon-free and visually appealing manner.

Generation Y today prefers to invest from an early age, which allows them to remain independent after retirement, or even to aim for early retirement. Research by Computer Age Management Services (CAMS) shows that 1.7 million of new mutual fund investors on its platform in fiscal year 2018-2019 were millennials, representing 47% of the 3.6 million new accounts in total, the company said.

Automating Mutual Fund Investments for Millennials

Fi goes a step further by allowing users to set FIT rules to automate their investing habits. FIT is a bot that acts on some predefined conditions chosen by the user like layaway 100 each time you order food etc. Money is transferred from the user’s Fi savings account to a mutual fund of the user’s choice. It allows users to overcome the inertia of starting investments and create the habit of investing for millennials. At the same time, it makes investing fun and helps users grow their wealth. every time they spend, according to a company statement.

Apart from condition-based investing (like investing every time you shop), users can also set up monthly, weekly, and even daily automatic investment rules with Fi. Investing money at regular and short intervals will reduce their risk by dividing their lump sum investment amount into installments, with amounts as low as 100. The app also allows users to invest in lump sums.

Expand mutual fund options on Fi

In the initial phase, users can choose from a set of index and passive funds, while more funds from all the major fund companies in the country will be added over the coming weeks. Fi decided to launch with index funds because they are a safe and easy way for users to get to grips with the idea of ​​investing and also offer competitive gains at very low fund management fees, Fi added. society.

Peer Investing Overview

Apart from mutual funds, Fi is also set to roll out a peer-to-peer investment option called “Fi Jump” which allows users to invest and earn up to 9% annual return on their investments.

This is done in partnership with Liquiloans, an RBI registered lending and borrowing platform. Investments made in “Fi Jump” can be withdrawn at any time – even partially, and the growth of their invested amount can be tracked at any time directly on the Fi app, the company said.

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Dolores W. Simon