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Direct Plan in Mutual Funds

All the AMC's come out with two options for each and every mutual funds scheme they have, One will be regular one (which you have been looking till date) , And Then the other option will be DIRECT PLAN, which will have a lower expense ratio compared to the Regular Option . This is because when you invest in mutual funds direct plan, there is no intermediary involved in between and a lot of costs which are associated goes away . That's the reason direct plan will have less expense ration. So If I have to explain in one line. Direct option of mutual funds will have no agent in between , you will be directly investing with AMC. That's why the Net Asset Values (NAV) of Regular and Direct plans of the same scheme differ. The NAV of Direct Plan will be higher than the NAV of a Regular plan. The difference in returns generated by a Regular plan and a Direct plan of a scheme is expected to range between 0.50 and 1 percent. This difference will compound year on year. In the case of both regular and direct mutual funds, the investment objective, asset allocation pattern, risk factors and the investment mix are same. A scheme's portfolio will be the same for both, Regular plan and Direct Plan.

How to invest in Direct Plan of mutual funds ?

Platform or sites such as ICICIDirect, FundsIndia, ScripBox  allows you to buy Mutual Fund Units online. However, when you invest through these platforms, you can invest only in Regular plans of MF schemes. Direct plans have lower expense ratio since no distributor commission is paid and this enhances returns. If you intend to invest in Direct mutual funds schemes and you are investing in 3-4 different fund houses, you have to keep a record of different login IDs and passwords of 3-4 different websites.  

At PrudentFP, you do away with this problem by providing a common investing platform for many fund houses. Being a SEBI RIA, we have empanelled with Mutual Fund Utility (MFU) online platform, which is a "Shared Services initiative formed by the Asset Management Companies (AMCs) of SEBI registered Mutual Funds under the aegis of AMFI, will provide you facility to invest in Direct plans of multiple mutual fund schemes across many fund houses using a single transaction. While using our RIA code, you can get a consolidated view and manage your all mutual funds portfolio with our integrated Wealth Magic Online Platform.

There are few steps away to follow while investing in Direct mutual funds, if you decide to invest online thorough us, you will require the following documents:

  • PAN card  
  • Cancelled Cheque
  • and KYC Compliance.

Once you have opened an account with MF Utilities through us and obtained a Common Account Number (CAN), you have to just decide and state how your money is to be allocated among different schemes.  With this platform, you are allowed to invest in SIP, STP, SWP , Switches lump sum, redemption of different AMCs in single platform.

Consolidated View Direct Plan through us!

As a SEBI Registered Investment Advisor, we have agreement with CAMS, they will provide us direct feeds data across all empanelled AMCs with CAMS under Direct Plan while assigning our code SEBI RIA Code INA100001877, if any investor puts this code while any transaction.  In this way, we have integrated wealth magic software where investors can see consolidated view of all their mutual funds schemes under direct plan whether online or offline at one place.   

     Invest Online-NSE

NSE has developed an online platform MFSS. This is a transactional online platform which facilitates you invest as lump sum, redemption, Systematic Investment Plan (SIP), Systematic Withdrawal Plan (SWP), Systematic Transfer Plan (STP), Switch and other transactions of mutual fund units under the strictly guidance of your adviser.



 

 

 

 

 

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  Online Portfolio View

  

Convenience is just a click away! We offer a host of services to manage your mutual funds and other investments. You can now integrated consolidate online portfolio view of all your holdings in all Funds serviced by us in one single window through our Wealth Magic Portfolio Online.  

 

 

 

 

 

 

 

 

 

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CFPCM , CERTIFIED FINANCIAL PLANNERCM, and are certification marks owned outside the U.S. by Financial Planning Standards Board Ltd. (FPSB). Financial Planning Standards Board India is the marks licensing authority for the CFPCM marks in India, through agreement with FPSB.