What is a direct mutual fund investment plan?

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.