Please find how direct investment can be better in Mutual Funds instead of an agent or online portal
The only difference in a Direct Plan vs Regular Plan is the expense Ratio
Since AMC distribute commissions to agent in regular plan , expense ratio in regular plan is higher where as in Direct Plan such kind of expenses are not there which make their NAV lesser compared to Regular Plan
Lets Take an Example
Below calculation are done in Money Control SIP
If you would have done an SIP In Birla Sunlife Frontline Equity - Growth Fund- Regular Plan from 01/09/2015 till today's date you could have accumulated units worth 75.26 for an Investment of Rs 12000/-and the NAV of 10/08/2016 and the NAV of 10/08/2016 is 178.61.
Total Investment worth today in Direct Plan is 75.26 X 178.61 = 13,442.18
If the same investment would have done in SIP In Birla Sunlife Frontline Equity - Growth Fund- Direct Plan from 01/09/2015 till 10/08/2016 you could have accumulated units worth 73.28 for an Investment of Rs 12000/- and the NAV of 10/08/2016 is 184.35.
Total Investment worth today in Direct Plan is 73.28 X 184.35 = 13543.79
Difference between Regular Plan and Direct Plan
= Rs 13543.79 - Rs 13442.18 = Rs 101.61
If your SIP goes in for 5 Years or more the difference would be substantial
I even did not knew such kind of difference exist, i recently visited investkiyakya blog and the blog owner guided me
Disclaimer : I am now where related to that blog
Both has pros and cons of investing
Pros : Superior Earnings
Can invest online through AMC Website
Cons : No special guidance in which scheme to invest
No Signal for buying and selling