Ask Value Research

Buying directly from MFs

You can invest in direct plans of mutual fund schemes if you want to avoid paying brokerage

Is it possible to buy mutual fund schemes directly from a fund house, without incurring the brokerage charges of a middle man? If yes, are there restrictions on which type of MFs can be purchased without brokerage?
- T. Mohandas

You can invest in Direct Plans of mutual fund schemes. SEBI introduced direct plans in January 2013. Direct plans do not involve agents or middlemen and investors can invest directly via asset management companies. This leads to elimination of agents and their commissions, the benefit of which is passed to investors in the form of lower expense ratio. All mutual funds offer regular and direct plans.

Read more about direct plans here: Regular Plan Vs Direct Plan.

This article was originally published on October 21, 2015.

Ask Value Research aks value research information

No question is too small. Share your queries on personal finance, mutual funds, or stocks and let us simplify things for you.


Other Categories

Informed fund ideas, better judgment. Every month. Mutual Fund Insight, every month since October 2002.

Take charge. Know more. Keep more. Mutual Fund Insight helps you do all three — every month