Should you invest in mutual funds through a distributor?

"I seek my advisor's help to invest in mutual funds. Is that a good idea?" Mr Amit Kulkarni, one of our readers, asked us recently. In India, about 79 per cent of Indians invest in 'regular' equity mutual funds , which means they put their money in funds through advisors and distributors, while only one in five invest in 'direct' equity funds on their own. But whether it's a good idea to invest through distributors and advisors doesn't have a straightforward answer. It's a good idea if... you are new to mutual funds you are not aware of how mutual funds work you can't select mutual funds on your own you don't have the time and skill to learn how mutual funds work On the other hand, it's not the best of ideas if... you know which mutual funds to invest in you want to avoid

This article was originally published on August 22, 2023.