Mutual Fund - Direct investing - Make use of it!

"Effective 1 January, all asset management companies (AMCs) launched direct plans of all their open-ended MF schemes, a move which was made mandatory by the capital markets regulator, Securities and Exchange Board of India (Sebi), through a circular issued in September."

So, are you still investing through your broker initiated portfolios?

Is there a need to switch to "direct" schemes?

Read the detailed article here. For those who don't have the time, here's the relevant portion which states the benefit in % for direct schemes. This amount may sound trivial but may add up to a huge saving over a period of time.  Please mind the impact of capital gains tax before you do the switch. ( Also note :-you will loose out on STT for switch out from regular plan as in case of normal sale)

According to figures provided to us by Outlook Asia Capital, equity funds have shown a difference of about 0.58% on an annualized basis between the net asset values (NAVs) of direct and normal plans, as on 11 January. We have taken the annualized figures here as the total expense ratio (TER) figures of MF schemes are also annualized. Liquid funds have shown a far lower difference of about 0.05%, so far.

No comments:


Simple Indian Food - Feel @home ( Best veg food blog )

" A Ship is safe when it is in Harbour, but the ship was not built for that"


These are just opinions/ ideas exchanged. No one can claim us responsible for any investment failures /losses based on the ideas expressed here.

Feel free to mail your queries/ comments to