Do you want to save money while investing in the direct mutual fund? Obviously, yes!
Investing in Mutual Funds is very easy! A lot of online portals are offering platforms to invest in direct plans of mutual funds. It’s now as simple as doing your online mobile recharge. These portals are basically aggregators who help you to purchase mutual fund scheme from various fund houses.
What is Direct Mutual Fund?
Direct plans are no different than the regular plans in terms of the investment strategy. The only difference between regular and direct plan is, in direct plans Asset Management Company (AMC) or mutual fund house does not charge any fees, distribution commission or transaction charges. The scheme would be denoted as “Direct” at the end of the plan name.
These direct plans are suitable for those who can manage their portfolio on their own and have a thurst of earning 1% extra. There would be a separate NAV for direct plans and it’s usually higher than the regular plans because of the zero expense ratio.
Hope you are aware that investing in mutual funds via regular plans attracts commission paid to the distributor/advisor/middleman. This amount sucks your NAV value up to 1.5%. I will not go into the depth as I have already written a detailed article on this. you can read it here.
Best Platform for Investing in Direct Mutual funds in India
There are many platforms available through which you can invest in direct plans of mutual funds. They are charging flat monthly fees or per transaction charge. Overall these charges are far lower than what you are paying to your broker or advisor.
One by one let’s take a dip dive and check which one is best for you. Choosing the best one from the list is not an easy task. I will take you through the platforms which are mainly cost-effective as our main aim to invest in the direct plan is to save cost.
Through mutual fund website:
Nowadays all mutual fund companies are having their own website through which you can invest in direct plans of mutual funds. Go to the website, create your account. Choose the plan you wish to invest, pay online and that’s it. You are done! The problem with this method is you have to create an account with each mutual fund house in which you want to invest. This is a cumbersome process and hard to manage if you want to invest in more plans of the different fund house. You don’t have to pay a dime.
Mutual Fund Utility:
In India, there is a common platform for all mutual fund house. go to http://www.mfuindia.com create your account, you will be assigned one common account number (CAN). Through this unique number, you can purchase mutual funds of any fund house of your wish. It is completely free of cost. Read more about Mutual Fund Utility here.
Register transfer agent:
CAMS and Karvy are the register transfer agent for mutual fund houses. You can go to their respective website, get your self-register, choose the plan you wish to invest, pay online and you are done. The problem here is, there are some fund houses which are linked with CAMS and other are linked with Karvy. So in that case, you have to get yourself register for both the platform. You will not get the consolidated account status in this case. These platforms are free of cost.
Kuvera is the completely free online portal for investing into direct plans of mutual funds. They are truly FREE. There is no catch or hidden charges for investing in direct plans of mutual funds. There is no trial period or any bundled offer. They are offering a free portal for investing into mutual funds regardless of the portfolio size. They also provide free financial advice.
They offer services like fund selection, goal planning, tax optimization, portfolio rebalancing etc. All these services are absolutely free. They claimed to offer the largest selection of direct mutual fund schemes.
As an investor, if you are looking for MF (Mutual Funds) or Stock investment, you can consider Zerodha as your preferred broker. As Zerodha offers both Direct and Non-Direct( Regular ) Funds.
Zerodha Coin is a platform that lets you buy mutual funds online, with no commission passback, directly from asset management companies. Your mutual funds, stocks, currencies, bonds, and more, all in your Demat in one place. They are basically a discount broker hence the brokerage is very less as compare to traditional brokers.
They have a product called Coin for mutual fund investment. They charge yearly maintenance fees of Rs.300/- The best part about Coin is the simplicity of the portal. Anyone can easily find the mutual fund scheme, check its performance, buy a lump sum or set up SIP. First 25000 of your portfolio is free, after that fees of Rs. 50/month irrespective of investment amount or mutual fund schemes. It is truly unlimited plan at just Rs. 50/month. You can view your investment in a state of art mobile app as well.
Easy SIP. Start/stop/modify your SIP as and when you want with just a click. Simple and single profit & loss statement and capital gain statement. If you have Zerodha account you can invest in the direct stock market with the same account.
This is another portal which offers direct plans of mutual funds. They only deal with direct plans of mutual funds. They charge Rs. 999/- flat for 1 year. Purchase can be done via net banking or auto pay. One time bank mandate needs to be set up for this. (nothing new). They offer vide range of funds from 36 AMCs.
Like other robo advisories, clear funds identify funds which are delivering consistent returns across economic cycles and market conditions. They do data crunching and suggest best plans based on the 2 year returns on equity plans with a minimum volatility. The same exercie will be done every fortnight. The minus point is that they do not have mobile app.
Groww is no different than the other portal which are offering direct plans of mutual funds. They are offering funds from around 37 AMCs. Which is quite a good number. The portal is quite clean and easy to use. Best part I found here is the detailing on the each script.
They have digged dip into the data and provided all the posible data points which can help you to take decision on your investing. I am impressed with the data points like performance comparision with other schemes in the same group. The pie chart on the holding analysis is eye catchy. There is an android app available in the app store iPhone users will have to wait for a while. Remember the saying “Good things comes to those who wait” so iPhone users hang on!
Other unique thing which I have noticed is the Group. They have created financial groups on various topics to discuss ideas and answer queries of the members. Members can help each other on deciding the best scheme based on the user profile. Memebrs can invite other people via group link.
Full marks to the team Groww.
Wealth trust offers mutual fund investment for free under its bacis plan. The basic plan covers mutual fund portfolio tracking, fund explorer. It also offers premium plan @ 39/month and Smart advisory @ Rs. 999/year +0.25% commission.
Apart from offering direct plans for free, it also offers your existing portfolio tracking just by providing registered e-mail ID. It will then collect the data from the various e mails from AMCs and update your portfolio accordingly. The entire process is automated. This is the unique feature I have found here for the first time. Their fund explorer is seems like an online shopping cart where you can filter the product based on the various parameters.
It is free for first 50k on investment. If you are a begineer you can use the servuce as there is no account opening charges, excellent interface. They offer referral program under which if your friend join Invezta using your code, your free investment limit will increase from 50k to 75k. It has an option for SIP pause and stop as and when you wish. It offers advisory services at an additional cost of Rs. 30 over and above the monthly fee of Rs. 79.
So overall its an gud platform and it provides an opportunity for an investor to complete KYC by yourself.
Bharosa Advisor is a SEBI Registered Investment Advisor. They offer un-biased and quality advisory that helps you make more. In addition they charge bare minimum charges for mutual fund transactions unlike other depository companies like sharekhan, Iifl etc.
You need CAN number and PayEzze for transacting on Bharosa.
Here is the comparision chart of all the major online platforms which are offering direct plans of mutual funds.
Please share your feedback on the above comparision and please share this article with your friends.