How to Invest in Direct Mutual Funds

Friends, today we are going to talk about how to invest in direct mutual funds. Which I will try to explain to you in the form of a story which is in very easy language. 

Friends, if you pay even a little attention, you will understand. 

So let's start. 

Let me tell you that this story is of Robert, who is 28 years old and he is a new-age shopkeeper. Today is the era of online shopping, why should Robert lag? Like millions of other people Instead of going to the store shopping Robert also buys everything online. 

The biggest reason for shopping online is the huge discount available here. Because of which Robert gets to save a lot. 

Another advantage is ease. From the comfort of your home, after researching for different offers one gets everything. 

After all who doesn't want to save money without compromising on the lifestyle?

What is Direct Mutual Funds

The same was done with his investment by Robert's friend David, who is a banker. A few years ago the mutual fund regulator gave investors an option of direct plans. 

After this David instead of buying schemes from an agent, he started buying schemes directly from mutual fund companies. Buying schemes directly from a company is called a direct plan. 

David came to know that now he can easily buy direct plans from any reliable app whatever you want. Through a reliable app, he can also know about the schemes that fit his needs. In addition to this special information, buying and selling of the investment scheme happen at ZERO fees. 

How does it work

David shared his experience with Robert. David told Robert that in a regular plan investor has to pay commission to the agent. The regular plans are about 1% more expensive than the direct plan. 

After listening to David. Robert asked what difference this 1% will make. 

David explained to him that this 1% looks small but has the capability of doing wonders. David told Robert that if in September 2013 i.e. 6 years ago he would have started a SIP of $100 in the direct plan of a good a multi-cap scheme, In comparison to the regular plan he would have made around $400 more returns which mean extra returns equivalent to 4 times the monthly SIP amount. 

David told Robert that in the long term this difference increases further. 

Robert still wasn't convinced. David knew that Robert has made up his mind for a long term investment through SIP. 

David explained if he would invest in a regular plan then from 21st year onwards the monthly commission of his agent would be more than his monthly SIP amount. 

Meaning he would be paying more money as commission than he would be investing. Robert was shocked to hear this. Robert did a quick calculation and he realized that increase in wealth due to saving of a 1% commission would mean that he can earn up to Rs. 25 lakh extra returns in 25 years. 

Now if he would earn more money than instead of buying 2 BHK he will be able to buy a 3 BHK house. He was impressed with David. While talking he downloaded the ANY RELIABLE app and started his mutual fund investments. 

While downloading the ANY RELIABLE app David gave another good piece of information to Robert. 

He told Robert that he can convert his existing regular plan investments to direct plans in just one tap which means the commission stops and extra income starts on these funds too. Now Robert decided to convert his regular plans to direct with one tap. 

After this David and Robert had their last sip of coffee and moved their own way. 

While going, I want to request all of you that please bookmark my website so that you always get such interesting and valuable information whenever you visit this site. 

Since you have bookmarked my website, you will not have to go to google search again and again and you can easily open it by going to your bookmark area. 

And finally, thanks for showing trust on the site once again and if you have any doubt comment me on through email do so for any further information. 

See you guys again.... 

(Disclaimer: MUTUAL FUND INVESTMENTS ARE SUBJECT TO MARKET RISKS, READ ALL SCHEME RELATED DOCUMENTS CAREFULLY)