ET Money Review: Pros, Cons, & Who Should (And Shouldn't) Use It

In the ever-evolving landscape of Indian financial technology, ET Money has emerged as a prominent player, aiming to simplify investing and wealth management for the average Indian. But is it the right app for your financial goals? In this comprehensive review, we'll delve into the app's features, benefits, drawbacks, and ultimately, whether it's worth your time and money.

What is ET Money?

ET Money is a comprehensive financial services app that offers a wide range of products and tools for investing, saving, and managing your money. Developed by the Times Internet group, ET Money has gained significant traction in the Indian market due to its user-friendly interface and diverse investment options.

Key Features of the ET Money App:

1. Direct Mutual Fund Investments: ET Money is a pioneer in offering direct mutual fund investments. This means you bypass intermediaries like brokers or agents, saving you from paying commissions. You gain access to a wide array of mutual funds from various AMCs, empowering you to make informed investment decisions based on your risk appetite and financial objectives.

2. Smart Solutions: Recognizing that investing can be intimidating for newcomers, ET Money introduces "Smart Solutions." These are pre-built, diversified investment portfolios designed by experts to match your risk profile and financial aspirations. Whether you're a conservative investor or seeking higher growth, Smart Solutions simplify your journey into the world of investments.

3. Genius Membership: For those who crave a personalized touch and deeper insights, ET Money Genius is a subscription-based premium service. It offers tailored investment recommendations, in-depth portfolio analysis, and exclusive access to stock recommendations. Genius membership aims to provide a more comprehensive financial guidance experience.

4. Financial Calculators: ET Money equips you with an array of calculators designed to aid in financial planning. The SIP calculator helps you project returns from systematic investments, the retirement calculator estimates your retirement corpus, and the goal-based calculators guide you in achieving specific financial milestones.

5. Portfolio Tracking: Keeping track of your investments is effortless with ET Money's portfolio tracking feature. Whether you've invested in mutual funds, stocks, or fixed deposits, you can conveniently monitor their performance in one unified dashboard. This gives you a holistic view of your investment portfolio.

6. Tax Saving Options: ET Money acknowledges the importance of tax planning in your financial journey. It provides access to tax-saving investment avenues like Equity Linked Savings Scheme (ELSS) mutual funds and National Pension Scheme (NPS), enabling you to optimize your tax liability.

7. Insurance Products: Recognizing the significance of insurance in safeguarding your financial well-being, ET Money offers a selection of insurance products. You can explore and purchase life insurance, health insurance, and term insurance plans directly through the app, ensuring comprehensive protection for you and your loved ones.

8. Financial Learning Resources: ET Money goes beyond just investment tools by fostering financial literacy. The "Learn" section is a treasure trove of educational articles, videos, and tools designed to enhance your understanding of personal finance concepts. It aims to empower you to make informed financial decisions.

In essence, ET Money's features cater to a wide spectrum of financial needs, from novice investors seeking simplified solutions to experienced individuals looking for personalized guidance. It aims to be a comprehensive financial companion, simplifying complex processes and offering diverse tools to help you achieve your financial goals.

Pros of Using ET Money

1. User-Friendly Interface: ET Money prides itself on its intuitive and user-friendly interface. The app's design is clean, uncluttered, and easy to navigate, making it accessible to both seasoned investors who are comfortable with financial apps and beginners who may be venturing into investments for the first time. The app's layout is well-organized, with clear sections for different products and services, ensuring a seamless user experience.

2. Direct Mutual Funds: One of ET Money's standout features is its emphasis on direct mutual funds. When you invest in mutual funds through traditional channels, you often end up investing in regular plans, which include commissions paid to intermediaries. ET Money allows you to invest directly in the mutual fund's direct plan, eliminating these commissions. Over the long term, the savings from not paying commissions can significantly boost your investment returns.

3. Diverse Investment Options: ET Money understands that investors have varied financial goals and risk tolerances. To cater to this diversity, the app offers a wide spectrum of investment options. You can choose from various mutual funds across different asset classes like equity, debt, and hybrid funds. Beyond mutual funds, ET Money also provides access to stocks, fixed deposits, NPS, and even insurance products. This diverse array of options ensures you can build a portfolio that aligns with your specific needs and risk profile.

4. Financial Tools and Calculators: ET Money goes beyond simply providing investment options. It equips you with an arsenal of financial tools and calculators to empower your financial decision-making. The SIP calculator helps you project the potential returns from your systematic investments, while the retirement calculator estimates the corpus you'll need for a comfortable retirement. Additionally, goal-based calculators assist you in planning for specific financial objectives like buying a house or funding your child's education.

5. Educational Resources: Recognizing the importance of financial literacy, ET Money has a dedicated "Learn" section. This section houses a wealth of educational articles, informative videos, and interactive tools. Whether you're a novice looking to grasp the basics of investing or a seasoned investor seeking to deepen your knowledge, ET Money Learn offers valuable resources to enhance your financial understanding. It covers a wide range of topics, from fundamental investment concepts to advanced strategies.

In summary, the pros of using ET Money extend beyond its convenience and diverse offerings. The app's user-friendly design, focus on direct mutual funds, wide range of investment options, comprehensive financial tools, and commitment to financial education make it a compelling choice for individuals looking to take control of their financial future.

Cons of Using ET Money

1. Genius Membership Cost: While ET Money's basic features are free, access to their premium service, Genius Membership, comes with a monthly subscription fee. This fee may be a deterrent for budget-conscious investors or those who are primarily interested in the free features of the app. While Genius offers personalized advice and additional tools, it's important to assess whether the benefits justify the cost for your individual needs.

2. Limited Stock Trading: ET Money does provide the option for stock trading, but its features are not as comprehensive as those offered by dedicated stock trading platforms. If you are an active trader who requires advanced charting tools, real-time market data, or a wide range of order types, you may find ET Money's stock trading platform somewhat limited. It might be more suitable for long-term investors or those who only occasionally trade stocks.

3. App Performance: Although ET Money is generally well-regarded for its user interface and functionality, some users have reported occasional issues with the app's performance. This can include slow loading times, especially during peak usage hours, or occasional glitches in the app's functionality. While these issues are not widespread, they can be frustrating for users who rely on the app for regular financial management.

4. Customer Service: The quality of customer service can be a mixed bag with ET Money. While some users have reported positive experiences with prompt and helpful support, others have encountered delays or difficulties in getting their queries resolved. The responsiveness of customer service can vary, and it's essential to consider this aspect if you anticipate needing assistance with your investments or other financial matters.

While ET Money boasts numerous benefits for investors, it's crucial to be aware of its potential limitations. The cost of Genius membership, the relatively basic stock trading features, occasional performance issues, and inconsistent customer service experiences are factors to consider before deciding if ET Money is the right platform for your financial needs. Weighing the pros and cons will help you make an informed decision and ensure a seamless financial management experience.

Who Should Use ET Money?

1. Beginners: ET Money is an ideal starting point for individuals who are new to the world of investing. The app's user-friendly interface, coupled with the "Smart Solutions" feature, simplifies the investment process. Smart Solutions are pre-designed portfolios that cater to different risk profiles and financial goals, making it easier for beginners to choose an investment strategy that aligns with their needs. Additionally, the "Learn" section provides educational resources to help beginners understand the basics of investing, mutual funds, and financial planning.

2. Investors Seeking Direct Mutual Funds: ET Money is a haven for investors who prefer to invest directly in mutual funds. By cutting out intermediaries like distributors and brokers, ET Money enables you to invest in direct plans of mutual funds, which typically have lower expense ratios compared to regular plans. This can lead to higher returns over the long term. ET Money's extensive selection of direct mutual funds from various AMCs gives you the flexibility to choose funds that match your investment strategy.

3. Individuals Looking for a Comprehensive Financial App: If you're looking for a single app to manage various aspects of your finances, ET Money is a worthy contender. The app not only offers investment options but also provides tools for financial planning, portfolio tracking, tax saving, and even insurance. This comprehensive suite of services simplifies financial management by consolidating multiple needs into one platform. You can track your investments, plan for your financial goals, save taxes, and even secure insurance coverage, all through a single app.

4. Tech-Savvy Individuals: ET Money caters well to tech-savvy individuals who prefer digital solutions for managing their finances. The app's sleek design, intuitive interface, and mobile-first approach make it convenient for users who are comfortable with technology. You can easily access your investments, track your portfolio, and make transactions on the go, making it a suitable choice for those who prefer managing their finances digitally.

5. Value-Conscious Investors: If you're a value-conscious investor looking to minimize costs, ET Money can be appealing due to its focus on direct mutual funds. By eliminating commissions and offering lower expense ratios, ET Money helps you maximize your investment returns. Additionally, the basic features of the app are free to use, allowing you to explore various investment options and educational resources without incurring any charges.

Overall, ET Money's target audience is broad, encompassing beginners, experienced investors, tech-savvy individuals, and those seeking comprehensive financial solutions. However, it's important to note that if you're primarily interested in advanced stock trading features or require highly personalized financial advice, you might need to explore alternative platforms alongside ET Money to fulfill all your financial needs.

Who Should Not Use ET Money?

1. Experienced Stock Traders: If you are a seasoned stock trader, you likely have specific requirements for your trading platform. You might be looking for advanced charting tools, technical indicators, real-time market data, level 2 quotes, and the ability to execute complex trading strategies. ET Money's stock trading platform, while functional, is geared towards beginners and long-term investors. It may lack the depth and sophistication that experienced traders demand. If you rely on advanced technical analysis and frequent trading, you might find ET Money's offering lacking.

2. Investors on a Tight Budget: While ET Money's basic features are free, its premium Genius membership comes with a recurring subscription fee. If you are a budget-conscious investor who prefers to avoid additional costs, the Genius membership might not be appealing. The basic features offer a good starting point for managing your investments, but you won't have access to personalized advice, advanced portfolio analysis, or exclusive stock recommendations unless you opt for the premium subscription.

3. Users Seeking Personalized Financial Advice: ET Money's Smart Solutions are a helpful tool for getting started with investing, but they are not a substitute for personalized financial advice from a qualified professional. If you have complex financial needs, require tailored investment strategies, or want ongoing guidance from a financial advisor, ET Money's automated solutions might not suffice. It's essential to remember that Smart Solutions are based on algorithms and may not fully capture the nuances of your individual financial situation.

4. Investors Seeking Alternative Assets: ET Money primarily focuses on traditional investment options like mutual funds, stocks, and fixed deposits. If you are interested in exploring alternative assets like cryptocurrencies, real estate, or commodities, you won't find these options within ET Money. The platform is best suited for those who are comfortable with traditional investment avenues and are not seeking exposure to more unconventional asset classes.

In essence, while ET Money is a versatile platform suitable for many, it's not a one-size-fits-all solution. Experienced traders, budget-conscious investors, those seeking personalized advice, and those interested in alternative assets might find the platform's limitations to be dealbreakers. It's crucial to assess your individual needs and preferences before deciding whether ET Money is the right fit for your financial goals.

Is ET Money Safe?

1. Robust Security Measures: ET Money takes the security of your data seriously. The app employs robust security measures to protect your personal and financial information. This includes encryption technologies that scramble your data, making it unreadable to unauthorized parties. Additionally, multi-factor authentication (MFA) adds an extra layer of security by requiring you to verify your identity through multiple channels, such as OTPs sent to your phone.

2. Regulatory Compliance: ET Money operates under the regulatory framework of the Securities and Exchange Board of India (SEBI) and is a registered member of the Association of Mutual Funds in India (AMFI). This means that the app adheres to strict guidelines and regulations designed to protect investors and maintain the integrity of the financial markets. SEBI and AMFI oversight ensures that ET Money operates in a transparent and compliant manner.

3. Data Protection and Privacy: ET Money follows stringent data protection and privacy practices. The app collects only the necessary information to provide its services and complies with applicable data protection laws. Your personal and financial data are handled with care and are not shared with third parties without your explicit consent. ET Money also has a dedicated privacy policy that outlines how your data is collected, used, and protected.

4. Secure Transactions: When you invest through ET Money, your transactions are processed through secure payment gateways. The app uses industry-standard encryption protocols to protect your financial transactions from unauthorized access. Your payment details are not stored on ET Money's servers, further minimizing the risk of data breaches.

5. Background and Reputation: ET Money is backed by Times Internet, a subsidiary of The Times Group, a well-established media conglomerate in India. This affiliation adds a layer of credibility and trust to the platform. ET Money has also garnered a large user base and positive reviews, further reinforcing its reputation as a secure and reliable financial services app.

6. User Education: ET Money promotes user education on security best practices. The app provides guidance on creating strong passwords, recognizing phishing scams, and protecting your account from unauthorized access. By empowering users with knowledge, ET Money helps them take proactive steps to enhance the security of their investments and financial information.

While no online platform can guarantee 100% security, ET Money takes significant steps to safeguard your data and investments. Its commitment to security, regulatory compliance, and transparent practices make it a trustworthy option for managing your financial needs. However, it's always prudent to exercise caution and follow security best practices when using any online platform.

How to Get Started with ET Money

1. Download the App:

• Android Users: Go to the Google Play Store on your Android smartphone and search for "ET Money." Download and install the app.
• iOS Users: Head to the Apple App Store on your iPhone or iPad and search for "ET Money." Download and install the app.

2. Create an Account:

• Open the ET Money app and click on "Sign Up."
• Enter your mobile number and email address. You'll receive an OTP (One-Time Password) on your mobile number for verification.
• Create a strong password for your account.

3. Complete KYC (Know Your Customer):

• KYC is a mandatory process in India for financial services. It involves verifying your identity and address.
• ET Money offers a completely digital KYC process.
• You'll need to provide your PAN (Permanent Account Number) card details and link your Aadhaar card for verification.
• You might also need to upload a selfie and a copy of your PAN card for identity verification.

4. Explore Investment Options:

• Once your KYC is successfully completed, you can start exploring the various investment options available on the ET Money platform.
• Take your time to understand the different types of mutual funds, stocks, fixed deposits, and other investment products offered.
• Pay attention to the risk profiles and potential returns associated with each investment option.

5. Set Financial Goals:

• Before you start investing, it's crucial to define your financial goals. What are you saving for? Retirement? A child's education? A dream vacation?
• ET Money provides tools to help you set specific financial goals and track your progress towards achieving them.

6. Choose Investment Products:

• Based on your financial goals, risk tolerance, and investment horizon, select the investment products that best suit your needs.
• If you're unsure, you can start with the "Smart Solutions," which are pre-designed portfolios based on your risk profile.
• Consider diversifying your investments across different asset classes to mitigate risk.

7. Start Investing:

• Once you've chosen your investment products, you can start investing. You can choose to invest a lump sum amount or opt for regular investments through Systematic Investment Plans (SIPs).
• Monitor your investments regularly and make adjustments as needed based on market conditions and your financial goals.

8. Utilize Additional Features:

• ET Money offers various other features like financial calculators, portfolio tracking, tax-saving options, and insurance products. Explore these features to make the most of the platform.

Comparison with Other Financial Apps

Here's a comparative analysis of ET Money with other popular investment apps in India:

ET Money's Unique Selling Points (USPs):

• Smart Solutions: A unique feature that sets ET Money apart is its "Smart Solutions," offering pre-built portfolios catering to various risk profiles. This is especially beneficial for beginners who might find it daunting to create their own investment strategies.
• Comprehensive Financial App: ET Money's strength lies in its comprehensive approach. It combines investments with tools for financial planning, tax saving, and insurance, making it a one-stop shop for financial needs.
• Educational Resources: ET Money Learn provides a wealth of resources for users to learn about personal finance and investing, empowering them to make informed decisions.

Areas Where ET Money Falls Short:

• Stock Trading: If you are an active trader, ET Money's stock trading features might not be sufficient. Zerodha is known for its advanced trading tools and features.
• Personalized Advice: While the Genius membership offers personalized advice, it might not be as comprehensive or tailored as the advice from a dedicated financial advisor.
• Alternative Investments: ET Money primarily focuses on traditional investments, so if you're interested in cryptocurrencies or other alternative assets, you'll need to look elsewhere.

Which App is Right for You?

• ET Money: Best for beginners, investors seeking direct mutual funds and a comprehensive financial app.
• Groww: Ideal for beginners and passive investors looking for a user-friendly platform and diversified investments.
• Zerodha: The preferred choice for active traders and experienced investors who require advanced trading tools and features.
• Paytm Money: Suitable for beginners and mobile-first users who want a simple interface for basic investments.

Ultimately, the best app for you depends on your individual needs and preferences. Consider your investment goals, experience level, and the features that are most important to you before making a decision.

ET Money Performance and Track Record: A Closer Look

Historical Performance of Smart Solutions:

ET Money's Smart Solutions are designed to provide diversified, risk-managed portfolios for investors. The performance of these portfolios varies depending on the chosen risk profile (conservative, moderate, or aggressive).

• Backtested Data: ET Money provides backtested data for their Smart Solutions, showing how these portfolios would have performed historically. While this isn't a guarantee of future returns, it gives users an idea of potential outcomes based on past market conditions.

• Long-Term Growth: Backtested data suggests that ET Money's Smart Solutions, particularly those with a long-term focus (5+ years), have delivered returns that outpace inflation and traditional fixed deposits. This indicates their potential for wealth creation over time.

• Risk Management: The Smart Solutions also appear to have effective risk management mechanisms in place. During market downturns, these portfolios have historically experienced lower drawdowns compared to some benchmarks, suggesting they may offer some downside protection.

Performance of Other Investment Products:

ET Money also offers direct mutual fund investments and stock trading. The performance of these investments depends entirely on the specific funds or stocks chosen by the investor. However, ET Money provides tools like fund ratings, research reports, and stock recommendations (for Genius members) to help users make informed decisions.

User Satisfaction and Reviews:

Overall, user reviews for ET Money are generally positive. Users appreciate the app's user-friendly interface, direct mutual fund investment options, and educational resources. The Genius membership has also received praise for its personalized advice and advanced features.

However, some users have expressed concerns about the app's customer service responsiveness and occasional technical issues. There have also been complaints about the cost of the Genius membership, particularly for budget-conscious investors.

Important Considerations:

• Past Performance: While historical performance can be informative, it's important to remember that past results are not indicative of future returns. Market conditions can change, and the performance of any investment product can fluctuate.
• Individual Choices: The performance of your investments on ET Money will also depend on your individual choices of funds or stocks. Thorough research and diversification are crucial.
• Risk Tolerance: It's essential to assess your risk tolerance before investing. Choose investment products that align with your risk profile.

Overall Assessment:

ET Money's track record, particularly for its Smart Solutions, suggests a potential for long-term growth and risk management. User reviews indicate general satisfaction with the platform's features and offerings. However, like any investment platform, there are areas where ET Money could improve, particularly in terms of customer service and stock trading features.

ET Money: A Powerful Financial Tool with Considerations

In the dynamic landscape of Indian fintech, ET Money has undoubtedly carved a niche for itself. Its popularity among investors can be attributed to its user-friendly interface, comprehensive range of financial services, and emphasis on direct mutual fund investments.

For beginners embarking on their investment journey, ET Money acts as a guiding light. Its "Smart Solutions" simplify decision-making, while its educational resources demystify financial concepts. Seasoned investors seeking cost-effective direct mutual fund investments also find ET Money to be a valuable ally. Additionally, individuals who crave a single platform to manage various aspects of their financial lives appreciate the app's diverse offerings.

However, ET Money is not without its limitations. The cost of the premium Genius membership might deter some users. Additionally, experienced stock traders seeking advanced tools and features may find the platform lacking in this regard. Those on a tight budget might also hesitate to opt for the paid subscription.

Ultimately, the decision of whether ET Money is the right app for you hinges on your individual circumstances and financial goals. If you prioritize a user-friendly experience, direct mutual fund investments, and a comprehensive financial toolkit, ET Money can be a powerful asset.

Yet, if you're an experienced stock trader or someone seeking personalized financial advice, exploring alternative platforms or consulting a financial advisor might be a prudent course of action.

As with any financial decision, it's imperative to conduct thorough research and weigh the pros and cons before committing. ET Money, while a potent tool for many, is not a one-size-fits-all solution. By understanding your unique needs and ET Money's strengths and weaknesses, you can make an informed choice that aligns with your financial aspirations.

Remember, the world of finance is constantly evolving, and ET Money is likely to continue innovating and expanding its offerings. It's advisable to stay informed about the latest updates and features to make the most of this platform as it evolves alongside the Indian financial landscape.

Disclaimer:

The information provided in this article about the ET Money app is for informational purposes only and should not be considered financial advice. Investing in financial products carries risks, and it's essential to conduct your own research and consult with a qualified financial advisor before making any investment decisions.

The author of this article is not affiliated with ET Money and does not receive any compensation for this review. The views and opinions expressed in this article are based on the author's research and analysis of publicly available information.

This article is not a substitute for professional financial advice. While every effort has been made to ensure the accuracy of the information presented, the author and the publisher do not guarantee its completeness or suitability for your individual circumstances. Always seek professional advice before making any financial decisions.