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  • News From Press Are more mutual fund investors shifting to direct plans for extra returns?

    Are more mutual fund investors shifting to direct plans for extra returns?

    Direct mutual fund plans have managed to corner a market share of a little over 40% in the last six years. Mutual funds had introduced direct plans of schemes six years ago as per Sebi directive.
    Economic Times Oct 26, 2019

    According to the recent Amfi data, direct mutual fund plans have managed to corner a market share of a little over 40% in the last six years. Mutual funds had introduced direct plans of schemes six years ago as per Sebi directive. According to mutual fund advisors, many new investors are increasingly flocking to direct plans due to the extra returns posted by these schemes and due to the convenience of investing online or through mobile applications.

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    2 Comments
    Prashant · 4 years ago `
    What a silly example this is. Only 2 funds shown giving better returns than regular funds. As if all the 40% invest in only these 2 funds and at the same time stay invested in them to get the maximum returns so maximum benefits so maximum wealth created.

    High time to conduct an detailed survey with every direct investor to ascertain

    1) How much time direct investors remain in any scheme?
    2) How do they define goals?
    3) How do they ascertain their risk appetite?
    4) How do they select the scheme after doing the right asset allocation and what parameters they check to pick a particular scheme?
    5) Do they know how to review and intervals when they have to review?
    6) What is their reaction in different market cycles?
    7) How many people knows that in the name of cutting distributor commissions AMCs rather than passing on the same to investors has increased TER in many schemes and maximised their profits no matter whether the scheme is performing or not?
    8) How are they satisfied by AMCs services meaning if they had to change the address or change the nominee or different services? How is AMC operationally?
    Prashant · 4 years ago `
    Also

    1) What do direct investors do when they see that other schemes of same or different fund house is giving better returns than their scheme? Also if they check past returns of a scheme to select or change the scheme what is the period they check?

    2) Also if the regular scheme of same or other fund house gives better than direct scheme in which they have invested what would they do?
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