What is Direct Mutual Fund?

Direct Mutual Fund

In today's post you will learn - What is a Direct Mutual Fund and how can you invest in it, what are the benefits of investing in a Direct Mutual Fund, and what kind of caution is needed when investing in Direct Mutual Fund?

Direct Mutual Fund is a simple means, there is no middle agent in such mutual fund .

Generally all mutual schemes can be invested in two ways - Direct (no middle agent) or Regular (middle agent, who commissions some fees from the amount invested)

Now as you know, Mutual Fund is an investment scheme, in which different people invest, and all the amount deposited in this scheme according to the pre-determined objective of that scheme, the stock market and other bonds and Invests in securities .

So now when different people want to invest in a mutual fund, they have two paths, either go directly to the parent company of the mutual fund scheme, and go there and invest directly in the Direct Mutual Fund .

For example, if you want to invest in UTI Nifty Index Fund (Mutual Fund Scheme), then the first way you have to go directly to the UTI Mutual Fund office or their website and invest directly, and opt for Direct .

And, apart from this, the other way is - you do not go directly to a mutual fund company, or go to a financial advisor, or go to a financial investment company, and it will help you to invest in different mutual fund schemes. If you advise about, often in such a case your mutual fund investment is invested in the regular scheme, and your financial advisor / investment company has a commission in the middle .

Even if you invest through a bank, the bank itself acts as an agent and you can invest in a mutual fund company of any other company, if you want, through a bank.

For example, if you go to the bank and say that you have to invest in mutual funds, then the employees of the bank tell you about many different schemes which usually give the option to invest in the regular mutual fund scheme, unless That you do not insist on investing in direct schemes yourself .


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