The trends observed are the returns between a regular and direct mutual fund vary in value between 08 % to 1.25 % on an annual basis. Though this would depend upon the market conditions and whether you are looking for any external help. For reputation of distributors happy customers are the key.
Let us compare the benefits of regular between direct mutual fund investment
A direct mutual fund plan signifies less expense ratio, as from the side of an investor more effort is called for. As an investor you need to shortlist funds on the basis of your risk profile and goals and choose funds that align with your needs. A middle man is going to have a concise idea about the same.
To compare and analyse the performance of a mutual fund and then you need to match it with profile of an investor. In interpretation of risk profiles you need to have a concise know how. Qualified professionals can guide you towards this investment profile. It is also possible to impart market expertise and provides inputs to invest in funds giving assured returns.
Regular viewing and monitoring
For an individual investor it is not possible to analyse or review their portfolio on a daily basis. A financial expert would help your overlook your financial statements and helps you with asset relocation. It can lead to better returns and this would identify expense ratio.
With regular plans it does not end with selling a mutual fund or to review on a constant basis. They are going to facilitate and help you track your investment. In a lot of ways it is customer friendly.
Always opt for a professional company, be it investing in any types of mutual funds. They help you choose handpicked plans but they work out to be regular ones. In comparison to the direct plans the expense ratio is going to be on the higher side. But still there are a number of benefits. Presented with numerous options it becomes difficult for an investor to handpick and choose a fund of their choice. A lot of parameters and scenarios come into play in the choice of a fund. How old is the fund, the past returns and financial ratio, all of them do go on to have a definite say in this regard. The professional companies go on to do their homework and present clients with numerous options to choose from. As an investor you can choose one as per your financial goal or budget. In addition you can align with your tax free ventures or are you looking to invest in the short term or long term.
To conclude both direct and regular direct mutual funds apphave their own set of pros along with cons. But you need to consider the fact that there is no form of difference between portfolio composition and the commission you are going to pay to the middle man. So opt for investing and align with your financial acumen.