{"id":15975,"date":"2019-07-24T10:47:13","date_gmt":"2019-07-24T05:17:13","guid":{"rendered":"https:\/\/www.fundsindia.com\/blog\/?p=15975"},"modified":"2022-07-15T15:07:55","modified_gmt":"2022-07-15T09:37:55","slug":"regular-mutual-funds-vs-direct-mutual-funds-which-is-the-best","status":"publish","type":"post","link":"https:\/\/fundsindia.com\/blog\/mf-research\/mutual-funds\/regular-mutual-funds-vs-direct-mutual-funds-which-is-the-best\/15975","title":{"rendered":"FundsIndia Explains: Regular Vs Direct Mutual Funds – Which is the best?"},"content":{"rendered":"

When it comes to investments, people generally tend to take cautious steps. They would prefer to make informed decisions while moving forward. There is a lot of confusion involved in choosing the right fund and checking if the investments made will bring good returns. So, let\u2019s learn about the two major types of mutual funds<\/a>, and then, compare them.<\/span><\/p>\n

Direct Mutual Funds:<\/b><\/h4>\n

These are the funds that an investor can buy directly from an Asset Management Company (AMC). Intermediaries and brokers are not involved in the case of direct mutual funds. As the name suggests, investments are made directly with the AMC. Commission and distribution fees are not charged, and transaction charges are not required, in the case of SIPs or lump sum investments.\u00a0<\/span><\/p>\n

Regular Mutual Funds:<\/b><\/h4>\n

These are the funds that investors buy through a broker, distributor, or advisor. When an investor buys a regular mutual fund, the fund house pays a commission to the intermediary. The AMC adds the commission to the expense ratio.\u00a0<\/span><\/p>\n

Comparison:<\/b><\/h4>\n

As humans, we always look for the best options at the least price. If it were everyday goods like shoes and clothes, getting a good deal works to your benefit. But it\u2019s not that simple with mutual fund investment, as huge amounts are invested in order to build wealth, making educated decisions a necessity.\u00a0<\/span><\/p>\n

For a first-time investor, there is a lot of apprehension in the world of investment. They will seek advice from anybody and everybody. They will try to follow anything, in order to safeguard their money. But not all advice is good advice. And this is where regular mutual funds come into play. A seasoned financial planner or an advisor from the intermediary will take care of the investments, in the case of regular mutual funds<\/a>.<\/span><\/p>\n

Schedule an appointment with an advisor!<\/span><\/a><\/div>\n

Why regular mutual funds are better than direct mutual funds?<\/b><\/h4>\n