Direct Mutual Fund

In today's post you will know what happens DIRECT MUTUAL FUND and how you can invest in it, what are the benefits of investing in direct mutual funds, and what kind of caution is needed while investing in DIRECT MUTUAL FUND?

So let's first know –

What happens DIRECT MUTUAL FUND?

Direct mutual fund a simple meaning, there is no agent in the middle of such a mutual fund,

Generally, all mutual schemes can be invested in two ways – DIRECT (no agent in between) or REGULAR (agent in between, who commissions some fees from the amount of investment)

Now, as you know, MUTUAL FUND is an investment scheme in which different people invest, and the manager of the scheme invests all the amount deposited in the scheme in the stock market and other bonds and securities as per the objective slated before that scheme,

So now that different people want to invest in a mutual fund, they have two roads, either they go straight to the parent company of the Mutual Fund Scheme, and go there and invest directly in the DIRECT MUTUAL FUND,

For example, if you want to invest in UTI NIFTY INDEX FUND (Mutual Fund Scheme), the first way you have to directly invest UTI directly by visiting the mutual fund's office or their website, and opting for DIRECT,

And, other than that, the other way is that –

you go directly to a financial advisor, or to a financial investment company, and he advises you to invest in different mutual fund schemes, so often in such cases your mutual fund investment is invested in a regular scheme, and your financial advisor/investment company has a commission in between

Even if you invest through a bank, the bank itself acts as an agent and you can invest in the mutual fund company of any other company if you want through a bank,

For example, if you go to SBI bank and say that you have to invest in a mutual fund, SBI bank employees tell you about many different schemes that usually offer the option to invest in regular mutual fund schemes unless you insist on investing in a direct scheme yourself,

'Now the question arises as to what exactly are the advantages of investing in direct mutual funds?'

So let's know –

Benefits of investing in DIRECT MUTUAL FUND

The biggest advantage of investing in direct mutual funds is that you can directly take advantage of the money that goes from your investment to the agent as commission,

Generally, DIRECT MUTUAL FUND and REGULAR MUTUAL FUND fees can vary from 1% to 2%,

And in the long run, it can vary from 1% to 2% in millions,

Need caution at the time of investment in direct mutual funds,

Let us talk about the kind of caution that needs to be taken while investing in direct mutual funds, because now the benefits of investing in direct mutual funds are the advantages and then everyone should invest in the Direct Mutual Fund Scheme,

But no, it's not,

It is only right to invest in direct mutual funds if you –

👉Fully know which fund you have to invest in,

👉When you know how to manage your portfolio,

👉When you fully understand the risk of investing in mutual funds,

👉When you know how some changes can be made to that mutual fund scheme, and

👉How to make better profits from the Mutual Fund Scheme and when and how to sell,

On the other hand, if you can't do all this, it's better for you to go to a good SEBI REGISTERED mutual fund Advisor and invest in a regular mutual fund, because if you invest in a regular mutual fund, you get some special benefits...

E.g. –

👉You are told which mutual fund you should invest in,

👉Your agent gives you the necessary information about your portfolio,

👉You can consult with your agent about investing,

👉The agent helps you if you need some changes or any other kind of mutual fund scheme,

👉So it's even clear what DIRECT MUTUAL FUND is, what are the benefits, and what precautions you should take while investing in it....

Now let's talk about how you can invest in direct mutual funds,

How to invest in direct mutual funds?

Note that as I first said DIRECT MUTUAL FUND you have to either go to the nearest office or branch of the mutual fund company and choose direct (DIRECT) while filling the mutual fund form

Or if you can start investing on the mutual fund company's website or through the mutual fund company's mobile application,

For more information, you must talk to the customer care of the mutual fund scheme you want to invest in, or visit their website and find out about it....

In addition, there are many other options nowadays that give you the option to invest in DIRECT MUTUAL FUND immediately and easily,

E.g. GROWW, PAYTMMONEY, ZERDOHA COIN and many more,

So I hope you've got answers to all the questions DIRECT MUTUAL FUND your mind by reading this post, you must have commented and conveyed your questions and thoughts to us,

Thank you very much for reading the post in full.

About

Hi , This is Pramod Choudhary from Nagaur Rajasthan India. I an student and I would like to share my positive thinking with everyone that's my passion . Thank you