By Lal Singh ET Money is one of India’s most popular personal finance and investment apps, launched in 2015 by Times Internet. It was created to simplify mutual fund investing, insurance buying, tax-saving, and personal finance management for everyday Indians. Over the years, ET Money has grown into a trusted brand used by millions of investors for SIPs, direct mutual funds, NPS, insurance, fixed deposits, and credit products.
But the real question remains: Is ET Money actually safe for your money and financial data?
The short and honest answer is: Yes, ET Money is generally safe as a digital investment platform but like all fintech apps, it has both strengths and risks. Let’s break it down clearly.
Pros of ET Money (What Makes It Safe and Reliable)
1. SEBI-Registered Mutual Fund Distributor
ET Money is registered with SEBI and AMFI as a mutual fund distributor. This means:
- It follows regulatory rules
- Client transactions are monitored
- Mis-selling complaints can be escalated legally
This regulation adds a strong legal safety layer for investors using ET Money for mutual fund investments.
2. Direct Mutual Fund Platform (Lower Cost for Investors)
ET Money primarily focuses on Direct Mutual Funds, which means:
- No distributor commission
- Lower expense ratio
- Higher long-term returns for investors
From a financial safety point of view, this is good because your money is not being eroded by hidden commissions over time.
3. Your Money Does NOT Stay with ET Money
A very important safety point:
- Your invested money goes directly to the mutual fund house (AMC)
- ET Money only acts as a technology platform and transaction facilitator
- Your mutual fund units are held with regulated depositories (CAMS/KFintech)
Even if ET Money shuts down one day, your investments remain completely safe and transferable.
4. Strong Data Security and Encryption
ET Money uses:
- Bank-grade data encryption
- Secure login systems
- OTP-based verification
- Secure APIs with fund houses
This reduces the risk of unauthorized access if users follow basic digital safety practices.
5. Backed by a Large Corporate Group
ET Money is backed by Times Internet (The Times Group) — one of India’s biggest and most stable media and digital businesses. This backing improves:
- Financial stability
- Long-term business continuity
- Brand accountability
This is an important trust factor in the fintech space.
6. Transparent Portfolio Tracking and Reporting
ET Money provides:
- Real-time investment tracking
- XIRR reports
- Capital gains statements
- Tax-saving insights
This transparency helps users stay in control of their own money rather than blindly trusting advisors.
7. Multiple Financial Products Under One App
Apart from mutual funds, ET Money also offers:
- Insurance comparison
- Fixed deposits
- NPS investments
- Loans and credit products
This creates a full personal finance ecosystem for users.
Cons & Risks of ET Money (What You Must Keep in Mind)
1. Market Risk Still Applies Fully
ET Money does not guarantee profits. If mutual fund markets fall:
- Your investment value will fall
- NAV drops are normal
- Losses are purely investor risk
ET Money is only a platform. It cannot protect you from stock market volatility.
2. Data Privacy Depends on User Behavior Too
ET Money protects data on its servers, but if users:
- Click phishing links
- Share OTPs
- Use unsecured devices
Accounts can still be compromised. Digital safety is a shared responsibility.
3. Customer Support Can Be Slow at Times
Some users report:
- Delays in ticket resolution
- Slow response during peak tax seasons
- Difficulty in fund switch or KYC updates at times
This doesn’t make the platform unsafe, but it can be frustrating during urgent issues.
4. Limited Personalized Human Advice
ET Money is mostly a DIY (do-it-yourself) platform. It does not provide:
- Personal financial advisors
- Dedicated relationship managers
- Hand-holding for nervous investors
Beginners who want human guidance may feel less comfortable.
5. Risk of Over-Reliance on App Recommendations
ET Money shows:
- Investment scores
- Ready-made portfolios
- Suggested funds
These are tools, not guarantees. Blindly following app recommendations without understanding personal financial goals can lead to poor investment decisions.
6. Loan and Credit Products Carry Usual Borrowing Risks
ET Money also shows loan and credit offers from partner NBFCs and banks. These carry:
- Interest rate risk
- Repayment stress
- Credit score damage if EMIs are missed
Platform safety does not eliminate loan risk.
Who Should Use ET Money
ET Money is suitable if you:
- Want to invest in direct mutual funds
- Prefer self-managed investing
- Are comfortable with mobile apps
- Want portfolio tracking and tax planning tools
- Are investing for long-term goals
- Understand basic mutual fund risk
Who Should Be Careful or Seek Advice First
Be cautious if you:
- Are extremely risk-averse
- Panic during market falls
- Need guaranteed returns on capital
- Don’t understand mutual fund basics
- Prefer personal advisors over digital platforms
Final Verdict
ET Money is a safe and legitimate investment platform from a regulatory and transaction-security perspective. Since:
- It is SEBI-registered
- It does not hold your investment money
- Your funds stay with regulated mutual fund houses
- It uses bank-grade data protections
- It is backed by Times Group
Your core investment safety is not dependent on ET Money’s survival.
However, ET Money cannot remove market risk. Your profits or losses depend entirely on:
- The funds you choose
- Market performance
- Your discipline and patience
In simple terms:
- ET Money as a platform → safe
- Mutual fund investing → subject to market risk
Used wisely, ET Money is an excellent long-term wealth tool. Used blindly, it can still lead to losses like any other market-linked investment.
Smart Safety Tips for ET Money Users
- Use strong passwords and biometric locks
- Never share OTP or app login
- Diversify across different mutual fund categories
- Invest through SIPs instead of lump-sum if unsure
- Review portfolio at least twice a year
- Keep emergency money outside the market