Direct Investment in Mutual Funds

Now many AMC's have come together and started https://www.mfuindia.com/ which will make it easier to invest in MF directly.

Process is simple

1) Fill up CAN form online and take printout
2) Fill up Payeezz form
3) submit it in POS location or courier directly
4) After CAN is generated email is sent is CAN Number
5) Send a request for login details to customer care and they send the required details.

After login all MF details are shown.
 
Wixifi.com charges 0.5 % per year. Even though it looks small amount if you have 1C in MF's then that will be 50K per year. Initially we can depend on these to provide guidance but we ourself's need to develop required knowledge.
 
Yes, you can have considerable savings by going for this option as ICICI is working really well in this sector. I personally advise you to also check the ICICI Prudential AMC as it can help you in increasing your savings even more.
 
Hi there !!

FundsIndia and ShareKhan are free but they offer investments only in Regular plans of Mutual Funds not in Direct Plans.

This means investors would have to pay extra money to AMCs in the form of extra expense ratio as compared to Regular Plans.

There are some new websites like Oro Wealth and Invezta which allow investment in Direct Plans but they charge some fees.

Have a nice time !! :)
 
Please find how direct investment can be better in Mutual Funds instead of an agent or online portal

The only difference in a Direct Plan vs Regular Plan is the expense Ratio
Since AMC distribute commissions to agent in regular plan , expense ratio in regular plan is higher where as in Direct Plan such kind of expenses are not there which make their NAV lesser compared to Regular Plan
Lets Take an Example
Below calculation are done in Money Control SIP
If you would have done an SIP In Birla Sunlife Frontline Equity - Growth Fund- Regular Plan from 01/09/2015 till today's date you could have accumulated units worth 75.26 for an Investment of Rs 12000/-and the NAV of 10/08/2016 and the NAV of 10/08/2016 is 178.61.
Total Investment worth today in Direct Plan is 75.26 X 178.61 = 13,442.18
If the same investment would have done in SIP In Birla Sunlife Frontline Equity - Growth Fund- Direct Plan from 01/09/2015 till 10/08/2016 you could have accumulated units worth 73.28 for an Investment of Rs 12000/- and the NAV of 10/08/2016 is 184.35.
Total Investment worth today in Direct Plan is 73.28 X 184.35 = 13543.79

Difference between Regular Plan and Direct Plan
= Rs 13543.79 - Rs 13442.18 = Rs 101.61

If your SIP goes in for 5 Years or more the difference would be substantial
I even did not knew such kind of difference exist, i recently visited investkiyakya blog and the blog owner guided me
Disclaimer : I am now where related to that blog

Both has pros and cons of investing
Pros : Superior Earnings
Can invest online through AMC Website

Cons : No special guidance in which scheme to invest
No Signal for buying and selling
 
I have an account with ICICI Direct and have MF with Franklin and HDFC. Knowing about Direct plan I have created accounts with each of the AMC using the folio numbers from ICICI direct. Everything seems to be going fine and I have the following queries:

* Is there a problem with using ICICI direct folios in my account? I would like to purchase direct plans. Will that create any issue?
* What is the procedure for moving MF from ICICI Direct to direct plan?

Thanks!
 

TracerBullet

Well-Known Member
I have an account with ICICI Direct and have MF with Franklin and HDFC. Knowing about Direct plan I have created accounts with each of the AMC using the folio numbers from ICICI direct. Everything seems to be going fine and I have the following queries:

* Is there a problem with using ICICI direct folios in my account? I would like to purchase direct plans. Will that create any issue?
* What is the procedure for moving MF from ICICI Direct to direct plan?

Thanks!
1) No issue, i moved my non direct holdings from MF accounts directly
2) Switch from Regular to Direct version of the fund - you are just switching funds, so can switch to any fund. Make sure broker details is removed, only then you will get option to select DIRECT. Also take care of exit load and/or taxation. In some recent investments into regular funds, it may make sense to hold for a little longer to avoid load and to get LTCG/indexation.
 
Quick followup:

Does that mean when a broker like ICICI Direct purchases funds from an AMC on my behalf, I can redeem them directly from the AMC site without involving ICICI Direct? Wouldn't they lose commission or cause other problems in their own portal/tracking system?

Thanks!
 

TracerBullet

Well-Known Member
Quick followup:

Does that mean when a broker like ICICI Direct purchases funds from an AMC on my behalf, I can redeem them directly from the AMC site without involving ICICI Direct? Wouldn't they lose commission or cause other problems in their own portal/tracking system?

Thanks!
ICICI is only a middleman, so Yes you can sell from AMC site. This usually got updated in ICICI Direct after a few days. Yes they will loose commission (usually 0.5-1%) which is the point of moving to DIRECT.

Anyway, it makes no sense to invest via any broker into regular funds, switch to DIRECT. Else you pay them % commission every year.
 

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