Skip to main content

Invest directly and earn more

Nowadays many people are interested to do investment in stock market.
Mutual Fund (MF) investment is one of the easiest way into the market to begin with.
You do not need to manage it in constant basis.

However few things you need to keep in mind while investing in MF.

Do investment online. It will empower you to buy and sell whenever you wish.

Its better to have single account to do all the transaction and track their values.

Do some research and make a list of preferred funds.Few sites to help you is
https://www.valueresearchonline.com/funds , http://www.moneycontrol.com/mutualfundindia
etc.

You will see lots fund.You need to choose as per your criteria.
You will see for each fund there is another Direct Plan. You may wonder why two name.
It has a history. Whenever you buy a fund there are 3 charges
a)Direct brokerage: Standard charge you pay to broker. Its normally 100 for investing Rs. 10,000 INR. There are broker like fundsindia.com which does not charge this brokerage.
b)Indirect Brokerage: The Fund house (say SBI MF ) gives some commission called trailing commission to the broker/agent.
c) Fund management charge.

So broker getting money directly from you as well as from the Fund House.

In 2013 SEBI instructed the Fund Houses to give customer option of direct investment so that customer can get rid of at least the brokerage. After this the so called Direct Plans came into life.

However the brokers will not offer you these funds as they will not be able to earn the trailing commission. So to buy Direct Plan you need to have account with each of the fund houses. But this is very cumbersome to manage multiple accounts with multiple fund houses.
Fortunately there is a solution as well. Use www.mfuindia.com to open a single account. Send them the documents required and get the account activated.

Now you can invest directly, and save the two brokerages a) direct brokerage you pay and b) indirect brokerage fund house pay out of your money.

Interestingly almost all of the Direct Plan shows around 1% better return than Regular plans.



Comments

Popular posts from this blog

Changing the system from within the system.

Do we need an emergency situation to awake? Yes we do need one most of the time. We only get awake when a Parliament attack, Mumbai attack, Samjhouta express attack, Mumbai local Train attack etc do occur. The problem is not that we get awake when the crisis occurs. But the problem is we fall back to sleep when the crisis is over . Let’s stop doing falling back to sleep. Whenever a crisis occurs the first thing we think is that we need change the system. We essentially first point our finger to the corrupt politics system, intelligence system, police system etc. The more we can name the more points we score as if we are in a mission only to find who the culprits are. I have a problem with this notion of only fault finding and essentially taking no action based on the finding. Who comprises the system? None but us. The collective individuals comprise the system. It’s we who give birth to a corrupted system and continue to feed the system with corruption in everyday. How? Let m...

Online shopping can silently help underpriviledged children

Friends, I am associated with an NGO named Pratyush. Its a centre for downtrodden children and women.To know more about Pratyush please visit  http://pratyush.org.in . We are helping them in our capacity. And now you can help them without pinching your pocket. Here is the mechanism. Now a days we do lots of online shopping from online portal. These shopping portal pay very good amount of advertising fee/affiliate fee to the advertisers. We have created one affiliate account for Pratyush in following websites: flipkart.com ,  snapdeal.com ,  amazon.in ,  infibeam.com . All the affiliate fee collected are directly going to Pratyush C D C W account via NEFT to  Pratyush C D C W   . How can you help? Whenever you  wish to buy  some product from any of these shopping sites, please  copy the url  of the product from the browser. Example  http://www.flipkart.com/asus- zenfone-4-a40...

purnataa

®a¡j¡l j®dÉ Aá¤a HLV¡ AÏeÕQua¡ B®Rz ®a¡j¡l Lrfb V¡J ÏWL regular euz d¤j®La¤lJ ÏL a¡C? Ïeuj L®l Ïeuj i®Âl ÏjÏR®mJ ®a¡j¡u ®cÏM e¡z ®a¡j¡l h¤®Ll d¤Lf¤L¤Ïe V¡J ®Lje ®S®e¡ Bm¡c¡z Ïeuj ÏL ®a¡j¡l Lb¡ e¡ ®i®hC Ns¡? ÏL S¡Ïe ®Le ®a¡j¡C Ïeuj ®L¡®l i¡®m¡h¡p®a C®µR L®l e¡z C®µR L®l j¡®T p¡®T HLV¤ g¡yÏL Ïc®az ®a¡j¡®L f¤eÑa¡ Ïc®a ÏLwh¡ ®a¡j¡l AÏeuj ®Lz