Thanks very much for your reply.
In the past I had invested through the broker/agent whose ARN number is always appearing on my accounts statement. In the accounts statement it also show w.e.f 2008 entry load is NIL. If it is how the broker and or distributor will be getting the commission. I mean to ask by going through broker how we will come to know how much expenses we have incurred?
After reading your reply I would go for direct investment going forward. But I want to know in the past whatever investments I had done through the broker what expenses I am incurring / incurred. Whether in the account statement it shows specifically these expenses under any category.
Thanks in advance for your reply.
Nitya
They get paid
by MF from the expense ratio.
You can compare expenses of Direct and Regular version of a Fund to see how much approx goes to Distributor. Example
Franklin Prima Plus has 2.29% for Regular and 1.34% for Direct which is almost 1%. This is extra expense every year.
You can also see the effect of extra expense by comparing returns of Regular vs Direct. Direct will give more.
Most distributors dont provide any real service and take home this amount year after year. With compounding, your portfolio size increases and what they get also increases.
So make a portfolio of consistent funds with long term record and dont go too overboard with midcap/sector funds, invest for 10+ years, use SIP for new investments and then you probably dont need too much advice. This is what i do.
If however you think you need professional advice regularly, then find a good advisor. FundsIndia seems to be good to me and they will give advice better than i can. What i say is usually based on reading theirs and others (free) website articles and some experience. But in this case you will loose extra expense every year, so choice is yours.
For investments that you already made through distributor, you first need to get access to MF site. Usually you can register account in little time if your mobile and email is correct. If not, you will have to fill some paper forms to update it.
Once you have access simply switch from regular to Direct if you want to keep the fund else redeem and move elsewhere. Make sure to wait until exit load period ( For Equity, usually 1 year sometimes 2 ) is over.