How you can save lakhs by switching to Direct Mutual Funds
Now most of the new investors in the market looking for good return over long run are not afraid to invest in equities, specially through Mutual Fund route. However most of these mutual fund investments are through third party brokerage houses of banks like ICICI, KOTAK, HDFC etc. When investors are investing in mutual funds through these route basically they are investing in “Regular Plans” of the fund houses. These Regular Plans attract extra charges due to various reasons like Distributor/agent commission etc.. Unknowingly retail investors are paying these charges which is making dent in their investments over long run. For e.g. expense ratio for Franklin India Prima Fund - Regular is 2.08% but the expense ratio is only 0.90% for the direct variation. The difference may be even more for other funds, you can try out with your own funds. Few years back after SEBI’s instruction, all mutual fund houses had to launch “Direct Plans” for each of their funds. These direct