Investing in Direct mutual funds save a lot of money over the period of years in contrast to investing in regular mutual funds. Many people tend to buy mutual funds through brokers just because there are many third-party services available in the market attracting potential investors.
Regular Mutual Funds are the investments in funds made via third-party agent or broker. These attract brokerage and offer lesser returns than Direct Mutual Funds.
It is hard to digest the fact that, even though Direct and Regular Mutual funds have similar investment objectives, there is a difference when it comes to returns. This article is for mutual fund investors who want to know about how the direct and regular mutual funds are similar in terms of portfolio and how do they differ when it comes to returns.
Investing in Mutual Funds through third-party mutual fund platforms will allot regular schemes to the investors. One can verify this in the account statement for the presence of Advisor that matches the name of the company through which you have invested into the Mutual Fund. It is rather daunting for many budding investors that what happens to the investments made in Mutual Funds if the Advisor runs out of business? This article helps mutual fund investors of regular schemes to track their mutual funds even after the third-party advisor runs out of business.