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Best Mutual Funds Investment Plans: Direct or Via Broker?


Best Mutual Funds Investment Plans: Direct or Via Broker?

One can invest in mutual funds in 2 ways.

They are a regular plan (through a broker or an agent) or a direct plan (invest by yourself).

However, when this option is given to you, you may be easily confused, and wonder how do I invest in the best mutual funds investment plans?

In this blog, we will describe to you the pros and cons of investing either directly or via an agent.

Why should you invest in the mutual funds by yourself?

You should invest in mutual funds by yourself to save yourself the brokerage commission. The brokerage commission is the difference in expense ratio in a direct plan and a regular plan. This difference is what is earned by the broker or the agent. Obviously, when you invest in the best mutual funds investment plans by yourself, this difference in the expense ratio will go into your pocket. Even though SEBI has reduced the brokerage fees since 2019, a considerable percentage of returns goes to the agent or advisor.

However, the cons of investing in mutual funds by yourself are that you will need to study the market by yourself and make all investment decisions alone. This means you need to have years of knowledge, wide experience and accurate knowledge of the markets.

Why should you invest in mutual funds through an agent?

While you may be gaining all the returns without any deductions in the first case, you can make higher returns in the second case! An agent or a broker will have the necessary information and the knowledge to invest properly on your behalf in the best mutual funds investment plans.

Moreover, since he or she has considerable experience and knowledge, they can invest very wisely on your behalf, whereas the normal investor may fail to anticipate market fluctuations.

The cons of investing with an agent have already been elaborated above.

Advantages of Investing Through an Agent

Investing in mutual funds through an agent is a much simpler process, as you do not have to worry about the hassle of filling out forms or other details.

An agent will regularly review your portfolio and review it considerably.

Moreover, an agent will give you the best possible professional help to maximise your returns. Regular plans can help you to maximise your returns as you will not be alone in taking the decision.

Conclusion

Moreover, to invest in the best mutual funds investment plans you can try a mutual fund agent. One such agent is Money Assist with close to a decade of experience. The company is very transparent in its dealings with people and offers the best returns possible. Hence, if you are looking for a mutual fund agent in Kolkata, choose Money Assist.