I have been getting many queries about the portals/websites/app investors should use to invest in direct plans of MF schemes. Good to see that the awareness about direct plans is increasing.
And why not?
It is foolish to invest in regular plans if you are a do-it-yourself investor. You are compromising on returns for no hint of advice.
Even for those who need assistance, it may be a good choice to work with a SEBI RIA and subsequently invest in direct plans (especially if you have a big portfolio). Please do not ignore the conflict of interest since I am a SEBI RIA.
I have compiled a list of various online direct plan platforms in India. You can try out these portals and choose the one that fits your requirements the best.
List of Online Mutual Fund Direct Plan Platforms in India
Here is the list (in alphabetical order except the first two entries) of direct plan platforms in India.
- Respective AMC websites
- MF Utility ( I use MF Utility)
- Zerodha Coin
Please understand this is not an endorsement of any of these portals. I have not really used out any of these portals (except MF Utility). For a few others, I have had just a cursory glance.
Moreover, I have no plans to compare these portals any time soon. You need to decide the right portal for you.
Fees/Charges of Direct plan platforms
These direct plan investment portals have different business models. A few charge a flat fee while others charge on a per transaction basis.
You do not have to pay anything for transactions through MF Utility, CAMSOnline or respective AMC websites.
Many of these portals are built upon MF Utility and hence can only allow investments with mutual fund houses that are onboard MFU.
Unlike many regular plan portals, these direct plans platform may not have strong marketing budget. And there is a clear reason for this.
For instance, a regular plan platform will earn ~Rs 50,000-Rs 1 lacs per annum from your investment worth Rs 1 crore (assuming 0.5%-1% commission income). On the other hand, direct plan platform will not earn more than Rs 2,000 per annum for the same or even bigger portfolio.
The earnings may vary based on the business model. Therefore, these platforms need to keep their costs under control.
These are the direct plan platforms I am aware of. There could be many more. If you are aware of any other such portals, please let me know in the comments section.
Book Suggestion: Bogle on Mutual Funds: New perspectives from the Intelligent Investor (John C Bogle)
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