Every mutual fund comes under two plans; regular and direct plans. When you make the investment on mutual fund through a distributor or agent it is called a regular plan. As the name suggests, the direct plan is those funds you can purchase directly from the company without the involvement of an agent. Both the plans are controlled by the same fund manager and have a common portfolio but come with different expense ratios. You can prefer any plan that you think that better suit your knowledge and requirements.
Direct mutual fund has
a lower expense ratio
As there is no agent involved in direct mutual fund investment, it comes with a lower expense when
compared with the regular plan. You are made free from paying commission or
service charges to the agents. When you calculate the savings on these
commission for years, it brings a good return on investment. There are several
reputed mutual fund providers to bring the best funds in direct plans to select
from.
Mutual funds are
subjected to risks
Mutual funds are subjected to risks and hence you should
select a fund with lower risks. Even though direct plans help you purchase
mutual funds directly from the company, it is not easy and you buy a shirt or
trouser from the factory outlet. You should have enough awareness and knowledge
on the mutual fund you select since they are subjected to risks. Every investor
is not equipped to identify the best mutual funds from the market and to take
make own decisions.
Professional help
Reputed online mutual fund providers are well aware of the
expectations of present investors and hence every type of service they need.
Any sort of assistance to make the investment directly on mutual funds is
provided by the mutual fund advisors. With incredible knowledge and years of
experience in the mutual fund market, they help you select the best find that
better suits your funds and expectations. Different funds come with different
tenure and rate of interest.
How to invest in direct
plans
Now everything is made so simple for the investors. You can
visit the nearest branch of a fund house or asset management company or the
website of the company. There are also registered online portals that help you
to invest in direct mutual funds without collecting any of the service charge
or commission from your end. These portals make you completely free from any
sort of paper works. You can upload the KYC and execute the order online to
make the investment without stepping out of the home or office.
Compare and invest
Online portals provide you the list of best mutual funds to
make the investment. It is a good idea to compare the rate of returns and to
make the investment. Automatically built online portals provide personalized
investment plan to fit the dream and budget of everyone.
Make the direct mutual
fund investment with a reputed online portal to enjoy the best in mutual
funds and customer services. They make you totally free from irritating sales
calls and help you manage everything online.
