It all started with an idea in the minds of three childhood friends all hailing from different companies, yet conjoined with their passion for Investments – Mohit Gang (ex-SVP, HSBC Bank), Anil Bang (Analyst, Marshall Wace) and Puneet Mehta (ex-Director, BOA-Merrill). All professionals in the financial domain, they setup MoneyFront with a single-minded objective to enable investors to get more returns from their investments.
The idea converged into a startup which started offering investment in direct plans of mutual funds. A relatively lesser known option in mutual funds, which enables investors to skip the distributors or agents and invest directly with the fund house. What’s the added advantage here?
The advantage here is that the commissions (trail fee) which are generally deducted from the returns will be transferred to the investor. A direct increase of up to 1.5% on the mutual fund returns. However, investors are still reluctant to invest in the Direct plans due to the perception that it is a time-consuming and complex process only for DIY investors.
Let us see how MoneyFront works
An answer to all the hesitations of the investors, the portal has simplified the investment process in few basic steps. The entire process is online and 100% paperless, no hardcopy or manual interaction is needed. Investors can choose a place and time of their choice, sip coffee and invest in direct plans. MoneyFront also provides an automated advisory service which adapts to the investors’ investment goals and risk preference and recommends schemes which are tailor-made for them.
The mutual fund section is an encyclopedia of information, consisting the latest news, views and updates that provide necessary insights into the world of investments. Everything an investors needs to earn more from his returns is available on MoneyFront.
Their target investors are mostly self-employed and salaried employees who have a brief idea about mutual funds. They have either invested in mutual funds through the regular plan or planning to invest in mutual funds. These investors usually have a long-term outlook on investments with a blueprint of the future in mind. The target group includes people who have just realized the importance of money and saving for a rainy day, child’s future or to buy something they truly desire.
There are other startups in the market with the same idea but MoneyFront has a unique edge over them.
MoneyFront is a completely paperless platform which none of their competitors can brag about. They do not require any physical paper for signup. For example, one does not need to courier them KYC documents, cancelled cheque copies etc. Everything can be scanned and uploaded.
Geographical barriers are no longer an issue. For all Non-residents, MoneyFront is the ultimate hassle-free way to invest in Direct Plans. MoneyFront’s platform is available to one and all (except US and Canadian NRIs).
MoneyFront gives investors the unique advantage of investing for the future of their children by providing the option to open an account for children below the age of 18.
MoneyFront gives the option to avoid paying commissions on one’s existing portfolio. With just few clicks, in a completely seamless and paperless way, investors can switch all their holdings in regular plans held across multiple fund houses to Direct Plans. All the applicable exit & tax implications (if any) are informed by MoneyFront and the choice to switch completely or partially is of the investor.
It also saves time and effort by giving the option of managing all the family’s portfolios through one login. Investors also have an option to hold investments jointly with the “Either or Survivor” signing rule.
Growth, Expansion Plans and Future funding
MoneyFront believes in continuously upgrading its technology and product platform to offer its clients the very best. Mobile app for android users is already available and it is about to launch its iOS application in next one month. It will soon launch simplified model portfolios and goal-based tracking for its clients.
MoneyFront has already received seed funding for its initial operations. The founders are actively looking for investors to invest in their inimitable venture.
Also Read: Startups That Bet Big On the Fintech Space!