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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.



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