In the fast-paced digital world, investing in mutual funds has become more convenient and accessible with the help of online platforms. From researching different schemes to diversifying your investment and monitoring your portfolios, digital platforms offer everything you need. However, with convenience, there comes a risk of potential fraud and cyberattacks and understanding the tips to avoid them is crucial.
In this article, we’ll explore whether investing online in funds is safe, common frauds to beware of and tips to avoid them.
Is Investing in Mutual Funds Online Safe?
An investment in online funds is absolutely safe and convenient if you take the right precautions, use trusted platforms and follow security guidelines. Online platforms regulated by official authorities like the Securities and Exchange Board of India (SEBI) ensure investors make a safe investment. With this, reliable online platforms are very well equipped with advanced safety features like two-factor and biometric authentication and encryption to keep users’ financial and personal data safe and secure.
Common Frauds in Online Investing
Here are some of the common risks of fraud that are associated with MF online investment:
- Identity Theft: Cybercriminals can steal your critical information, including personal details, login credentials, and bank account details, and use them to get unauthorised access.
- Phishing: It happens when scammers use fake websites or send e-mails to trick you into revealing personal information.
- Unrealistic Returns: Fraudsters sometimes will offer you unrealistic returns that are too good to be true and lure you to invest in the same.
- Upfront Fee: Cybercriminals promise high returns and better schemes and ask you to pay a high fee beforehand.
Pro Tips To Avoid Frauds
Let’s explore the common tips to avoid mutual fund fraud and ensure you have a safe investing experience:
- Choose Reputable Platforms: Make sure you are using a trusted and reputable online platform that is authorised by official bodies. Check reviews on official sources and make sure they are genuine.
- Beware of Fake E-mails and Messages: Always beware of fake e-mails, and don’t fall for the messages that sound unrealistic to you. Verify the platform’s authenticity before sharing any information.
- Don’t Fall for Pressure Tactics: Avoid making immediate decisions, take your time, do your research and consider asking professionals.
- Use Strong Passwords: Set a strong password which is a mix of upper-case and lower-case letters, numbers and symbols of your MF online ID. Avoid sharing your password and keep on regularly changing it. Ensure that you do not use easily predictable words or numbers in your passwords, such as your name or your date of birth.
- Monitor Your Account Regularly: Track your activities and manage your account and your portfolio. If you find any suspicious activity, ensure to report it immediately.
- Use a Secure Internet and Updated Device: Avoid using public wi-fi when making any transactions and keep your device and apps updated.
- Keep Your Device Secure: Enable multi-factor and biometric authentication to add an extra layer of protection to your mutual fund app.
- Read the Terms and Conditions: Ensure that you read and understand all the terms and conditions. Learn about all the risks involved and the investment objectives.
- Seek Professional Advice: It is advisable that if you are a first-time investor, you should not fall for advertisements and take professional advice when it comes to choosing a platform and an investment scheme.
Final Thoughts
It is concluded that online funds investment is actually safe if it is done the right way and with proper security measures. With the help of trusted mutual fund apps like Bajaj Finserv, users can safely make investments and manage their portfolios. The platform allows investors to create accounts digitally and choose from a wide range of funds.
So, make sure you follow the above-mentioned tips and stay updated on all the fraudulent activities to enjoy the benefits of online investing and earn maximum returns.
