DIRECT or Regular investment in MF

POSTED BY Prabal Sen ON April 22, 2013 12:21 am COMMENTS (2)

I am an ARN holder to sell mutual funds. But it is not my job or profession. I use that ARN code against the investment of my family members only. I am the only son of my parents and my savings are invested in name of my father and mother only. I am getting Rs.5000-6000 yearly as brokerage.

There is an option to invest as DIRECT, which will give superior return than REGULAR investment (investment made through distributor) as expense ratio of DIRECT investment will be less. Now my question is which mode of investment will be better for me: Getting the brokerage using ARN code or make investment as DIRECT to get better returns? In monitory terms which will be more beneficial if I reinvest the brokerage also?

2 replies on this article “DIRECT or Regular investment in MF”

  1. Going regular and getting brokerage for your own investments is like interrupting the compounding and not allowing the corpus to grow to its full potential.

  2. Dear Prabal, you know the answer better than me. Expense ratio of 1.8% & ER of 1.2%, where can you earn more return? You can not earn extra on your brok. income. So the answer is clear to you.

    Thanks

    Ashal

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