Three years since the introduction of the concept, direct investing (through which an investor invests directly with a fund house without going through a distributor) is yet to take off in a big way, particularly in smaller cities. Only three per cent of individual mutual fund (MF) assets from the so-called beyond 15 cities (B15) come through this mode. In the top 15 cities (T15), over a tenth of the assets has come through the direct route. An investor can save 70-100 basis points by investing through the direct route and these savings can become sizable chunk over a period.
Mutual Funds: Small, mid cap funds saw massive surge in folios in March
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