Are you a DIY investor?

For over a decade, the mutual funds regulator has forced all funds to offer a direct-to-the-customer option, and most well-informed investors have understood the advantage of direct funds. They know by now that all funds have a 'direct from the manufacturer' model, whereby investors can get a 'direct' equivalent of each fund. These are cheaper in the sense that the mutual fund company deducts lower expenses since it does not have to pay the 'retailer'. Thus, cheaper translates to higher returns. How much higher are the returns from direct funds? A small amount annually, but with compounding over the years, it builds up. So, does that mean that direct funds should be an automatic choice for all investors? Not quite. The 1 per cent or so per year differential of returns that exists between direct and regular plans is money, but perhaps not too much of it. One could think of i