Life should be clutter free and investments should be kept as simple as we can.

With stock market going through ups and downs every day, mutual funds have become a very attractive option for investment today. There are more than 1000 schemes available in the mutual fund industry which allows us to choose funds as per our needs and risk profile. The ultimate motive of the investment is to make every penny work so it takes you nearer to you goals and dreams.

Tough time call for tough choices and pinching every penny, in this scenario when the market we get very worried about losing our money in commission and expenses ratio.

It’s true that regular funds have some commission included as a part of expenses ratio, however if you look towards the benefits of investing in regular funds, you can easily compromise on the charges part.

Why Retail Investor should avoid Direct Plan of Mutual Fund?

Records of Investment

It was quite shocking for me that none of the financial planners touch upon this point in their post on Direct Plans. Today if i invest in 8-10 mutual fund schemes of 5 fund houses then i need to remember and store details of all the direct schemes separately. If god forbids and something happens to me then my wife has to search & trace all the details. We forgot one imp point that approx 22000 Cr. investor’s wealth is lying unclaimed in various financial instruments. The only reason is either the investor forgot about investment or legal heirs of investor could not trace any record of the investment.

The basic thumb rule of personal finance says that all the investments should be consolidated, concentrated and preferably centralized. If i have single unified mutual fund account with bank or distributor then my wife can easily access all the details through single window.  Remembering password of 10 different accounts is a big hassle.

Now you must be wondering what about single consolidated statement generated by CAMS etc. for all mutual investments. Answer is that you cannot rely on same. The day i registered my email id, i stopped receiving physical statement. My wife may not have access to my Email account.

Documentation

Documentation is major hassle in direct plan for both online and offline investors. For each investment, you have to complete separate set of documentation. If you are active investor then its a nightmare. Today, i have mutual fund account with one of the leading private banks. I can place order / redeem mutual fund units with 2 mins flat without any additional documentation for each investment.

Operational Hassle

For investors who are not comfortable with online operation, it will be operational nightmare. For every transaction they have to visit the branch of fund house. In case of agents / distributors, they provide pick up service to regular investors. Also the agents / distributors have wide network of branches compared to branches of a fund house. In a city, you will find 1 branch of fund house but there will be 10-15 branches of popular agents/distributors.

Review and rebalance – Specially when the market is going against our expectation, we need someone who and hold our hands in these tough times and help us to safeguard our portfolio from market volatility, At Saffollya …, we provide you an investment advisor who help you to review and rebalance your portfolio as the need arises. It has been observed that with review and re-balances; there are higher chances of keeping you on track with your financial goals.

All funds under one umbrella -At Saffollya …, we provide you a platform, where you can purchase funds from any AMC with one account, no paper work, and no hassle to remember numerous passwords, just one login and you can perform all the transactions. You can even purchase NFOs online. The basic thumb rule of personal finance says that all the investments should be consolidated, concentrated and preferably centralized. If i have single unified mutual fund account with bank or distributor then my wife can easily access all the details through single window.  Remembering password of 10 different accounts is a big hassle.

Detailed comparison – Compare two or more funds from the same category to make smart investment choices.

Amazing customer support– Customer support is the back bone of regular funds; we are just 1 call away to provide you any guidance related to your investment. Our customer support specialist not only helps you in picking the right fund but also, they assist you for every query related to redemptions, switch or anything related to mutual funds.

Wealth Coach : Our advisor – “Wealth Coaches” are highly trained on managing personal finance and assigned to work towards clients goals with consideration of Insurance need, individual taxation etc.  Moreover, through technology support we take care our client’s interest on faster way.

No bias– The funds offered are not biased towards any single AMC, choose you funds depending on your needs and risk profile or ask for an advisor.