Many investors ask me questions like “what do you think about direct funds?”, “Should we invest in them?” My simple answer to them is a question. Do you operate yourself looking at a video on youtube? If the answer is yes, go ahead and invest in direct funds, if no, don’t.
Direct funds are for those investors who do not need an advisor. An advisor helps you to
- Select right fund
- Provides you with service like collection of form
- Transaction execution
- KYC process
- Switching when fund is not performing well
- Help you redeem such that you bear no or minimum tax and much more.
Direct mutual fund platforms do not provide any such service. They display products for you to select and buy.
Role of mutual fund advisor was, is and will be there in the industry. The day people will treat themselves without going to doctors, role of advisors will end.
The below chart shows that still 82.7% of retail investors prefer advisors.
Select your advisor wisely. At Baxi Investment we have the policy where, we do not sell Mutual Funds but we help you to purchase Mutual Funds. Our advice is customized and no two clients will receive the same advice.