In 2013, the Securities and Exchange Board of India (SEBI) directed the AMCs to launch the Direct plans (i.e. zero commission plans) for all their existing mutual fund schemes. Thus, now there are two plans for any mutual fund:
a. Regular Plan
b. Direct Plan
In the regular plan, each year you pay a hidden fee of 1% – 2% as a commission to the agents / brokers / intermediaries. These commissions are paid to the entities from your investments and thus reducing your returns. Direct plans on the other hand do not have any such commissions and thus offer higher returns.
You can easily purchase Direct plans of any mutual fund scheme of your choice with the help of platforms like Orowealth.com, and generate higher returns.
Let Us Understand How Direct Plans Help You Generate Higher Returns
Let’s consider you put in Rs 10,000 p.m. in a Direct plan with a growth rate of 12% and an expense ratio of 1% then the return will be 11% p.a. Similarly, the Regular plan of the same mutual fund with 2% p.a. expense ratio will give generate return of 10% p.a.
If you let the investment grow for 20 years then the difference in earnings will be of Rs 10,62,692. That is huge, don’t you agree? And this entire money are paid to your brokers or agents.
So How Can You Switch to Direct Plans?
Investing in Direct plans is very easy, with the help of platforms like Orowealth. Their platform provides you with paperless experience that is also hassle-free and helps you to invest in Direct plans. You can invest via Orowealth’s website and mobile apps. Just a few clicks and you can purchase one-time or monthly via SIP in Direct plans. Additionally, you can manage all your investments on a single dashboard.
Already Have a Mutual Fund Investment? Don’t Worry!
Orowealth also allows you to switch your existing mutual fund investment into direct plans with just one tap. You only need to upload the statement of your mutual fund investment and they will assist you in switching your Regular plans to direct ones. The platform also provides tools that offers the precise data on the commissions you have paid so far.
A Transparent Platform
There’s a high chance that brokers might suggest you funds which have a high rate of commission rather than suggesting a scheme that is more aligned with your financial goal.
Platforms that may appear free, can charge you thousands in hidden commissions and other costs. It is thus hard to know whom to trust when you want to invest and is certainly not easy to figure out.
Orowealth was designed to address this need. It eliminates any bias as it offers you Direct plans and also offers personalized advisory to help you make more from your investment.
Direct Plans and Personalized Advisory
There is a common misconception that Direct mutual fund plans do not offer any kind of advisory; another common myth is that these plans are only for those who are financial market experts. But this certainly is not the case.
Orowealth’s proprietary OroAssist™ technology offers you custom-made portfolios based on your risk appetite and financial goals. OroAssist™ constantly checks your portfolio and informs you instant if there are things to change.
Over twenty thousand customers trust Orowealth and they manage over Rs 600 Crores in assets under advisory.
Personalized Financial Advisory and Portfolio Guidance
It is good to have the comfort of an actual human advisor that you can trust for your investments. This is the reason why Orowealth also provides you the choice of a dedicated financial advisor who will take care of your specific financial needs and make a customized investment plan for you.
Best Direct Tax Saving Direct Plans:
The platform also provides option to invest in tax saving schemes. The following are some top picks:
Disclaimer- Mutual Fund investments are subject to market risk. Please read the offer document carefully before investing’.