If I invest in mutual funds through a demat account, will it be considered under direct plan or regular plan? My doubt here is about the benefit of agency commission ( brokerage on transaction)? Is there any facility to opt for direct plan through a demat account?
- Gentela Ramalingeswararso
You can invest in mutual funds through a demat account, but not in direct plans. You haven't given the details of the demat account. Our guess is that you have got it from an intermediary like a bank or broking firm. When you route a mutual fund transaction through an intermediary, the mutual fund pays a commission to it for its service. For this reason intermediaries do not provide direct plans. Direct plans are meant for investors who are ready to directly contact the AMC and invest without distributors.
For more information, read: All About Going Direct.