The online financial marketplace is booming. It is not only selling products like insurance, mutual funds and loans, but also services like tax-filing, credit score fixing, managing your budget and full-fledged financial planning including an inheritance plan with an e-will mailed to your inbox.
The sole motto of all the companies is to make you a smarter investor/saver/emptor— the tagline keeps changing according what the business is. The pillars on which the trade stands are also pretty much the same. They may be selling several products or a single type of investment, but the services offered are usually free, easy to use, and help you make quick decisions and close the deal on the go, typically using their app. But decisions, especially concerning money, should not be made in a hurry. It may be easy to buy, but you need to make sure you don't end up with something that is wrong for you. Unlike an Am azon or Flipkart purchase, financial pro ducts can't be returned, nor will you get a refund. Don't let an impressive interface distract you from asking the basic questions.
Who is selling?
Offline, a mutual fund broker will tell you upfront that he is a 'broker'. Online, he may have an app that is promoted as a 'tool' to help you buy units easily. Therefore, it is essential to know what their business model is, especially when you see the word 'free'. They may call themselves an online aggregator or an app for managing money or helping you buy the best product, but they cannot sell products unless they are licensed brokers. They may offer more products than an offline agent, but the underlying principle is the same—they earn commissions by selling products. The products listed at the top are the ones that fetch higher commissions. They often have top-shelf deals with companies.
