If you are in the know of things, you might have switched your mutual fund portfolios from regular plans to direct plans by now. If not, you must do an internet search or check this article “direct plans vs regular Plans” to understand how you have been a victim of so-called “Free” platforms providing regular plans.
As the Indian consumer is waking up and realizing the losses he/she might have made over the years due to commission hungry and ‘free’ platforms, there is traction in the direct mutual fund space. Over the last 5 years, the CAGR of direct equity platforms is over 44%.
Coupled with huge inflows in mutual funds by retail investors like you & me, many players have come up with platforms for investing in direct mutual funds. But wait… are some of the platforms advertising themselves as ‘Free Direct Mutual Fund Platforms’? Does it sound fishy?
One thing that the retail investor has learned from previous episodes of duping by commission agents is that nothing in this world is free. If you are getting something for free then my friend, it’s a red alert!
Especially in the investing space where you will be in for the long term. There is always a catch if you don’t know the full picture. Earlier, in the case of regular funds, it was the commission, now in case of direct funds it could be anything including your data, wrong products such as insurance linked investments, personal loans, etc. There are multiple ways to fool a customer.
So why am I telling you all this?
Because you as an investor need to know the full picture. You must hire advisory services for a much lesser cost than the 1.5% commission that most people pay from their hard earned money (yes I know it is not visible but believe me, it is your money).
A trusted advisor stays through the thick and thin and is able to advise you on the right investments at the right time.
Every investor is different. Similarly, investing needs are also different. Hire an advisor who understands this need and gives you a personalized solution. Honest & unbiased advisors help you choose proper allocation and direct mutual fund schemes tailored only for you.
For Equity Portfolio Advisory please contact Jama Wealth Advisory.