Understanding Gilt Fund's Mechanism

[timepass]

Also go fore Direct Funds instead of through distributors. You will save 0.5-1 % every year which is a lot.

Pardon my ignorance, but what is "DIRECT FUNDS" ??

 

[msa5678]

Pardon my ignorance, but what is "DIRECT FUNDS" ??

Funds which are processed directly through the MF house, instead of going through brokers are called DIRECT funds. That is my understanding , hope I am right.

Sent from my SM-G610F using Tapatalk

 

[timepass]

Funds which are processed directly through the MF house, instead of going through brokers are called DIRECT funds. That is my understanding , hope I am right.

Sent from my SM-G610F using Tapatalk

Ok. Somewhere in this forum ST had recommended opening accounts with the different mutual fund houses on their website and buying directly.

I didn't know that it made a difference of 0.5-1%. A friend of mine has a trading+demat account with IIFL. He had recently inquired about MFs and was told that there was no entry load and no exit load (depending on the holding period). So where would the difference of 0.5-1% be ? In the dividend/payouts ?

If so, how does one find out about the difference ?

 

[msa5678]

Ok. Somewhere in this forum ST had recommended opening accounts with the different mutual fund houses on their website and buying directly.

I didn't know that it made a difference of 0.5-1%. A friend of mine has a trading+demat account with IIFL. He had recently inquired about MFs and was told that there was no entry load and no exit load (depending on the holding period). So where would the difference of 0.5-1% be ? In the dividend/payouts ?

If so, how does one find out about the difference ?

Below are 2 screenshots, Fund is same, but one is regular other is direct. Direct gave a return of 2.06% and Regular gave 1.93% during the month of September 2017.
Same funds yearly returns are 38.2% and 35.81 respectively. So u see the difference clearly.
We can identify these very easily as it is mentioned in the name of the fund whether it is REGULAR or DIRECT.

Sent from my SM-G610F using Tapatalk

 

[timepass]

Superb explanation, bro.

(went through the smilies but couldn't find one for clapping, so just trying )
:clap: :clapping:

Below are 2 screenshots, Fund is same, but one is regular other is direct. Direct gave a return of 2.06% and Regular gave 1.93% during the month of September 2017.
Same funds yearly returns are 38.2% and 35.81 respectively. So u see the difference clearly.
We can identify these very easily as it is mentioned in the name of the fund whether it is REGULAR or DIRECT.

Sent from my SM-G610F using Tapatalk

 

[candle]

When you buy through Broker/ARN, some amount of your investment goes to him as his commission ( usually 0.5 to 1.5%) and this commission is deducted directly from your investments and rest amount of your invested value goes to your folio. But when you buy in Direct Mode, this commission is saved and full amount of your investment goes to your folio. Hence it shows better returns when invested Directly. Hope I justified.

 

[Vikas Rawat]

Funds which are processed directly through the MF house, instead of going through brokers are called DIRECT funds. That is my understanding , hope I am right.

Sent from my SM-G610F using Tapatalk

If you do not want to visit each fund house website.. Go to Camsonline website, register yourself and you can buy DIRECT/Regular Mutual funds.