POSTED BY July 4, 2013 12:45 pm COMMENTS (2)
ONHi,
I have read following links,
https://www.jagoinvestor.com/2013/04/direct-plan-in-mutual-funds.html
https://www.jagoinvestor.com/2010/04/understanding-different-commissions-on-mutual-funds.html
So my understanding is,
If I want to invest for long term (30 yrs.), Direct plan is better.
But, in direct plan I can save only on following commissions,
1) Commission from Client
2) Upfront Commission
and not on
3) Trail Commission
But, if I become agent and opt for regular plan with my ARN number, all commissions will come to me.
(The investments will be on my wife’s name, who is not earning)
So, in long term (30 yrs.), Regular plan (with me being the agent) is better than Direct plan, provided all remaining conditions are same.
Please correct me, if I am wrong.
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Hi Ashal,
I didn’t understand your question.
My question is,
I invest money in my wife’s name, which means i am giving money to her as gift.
Now, If my wife takes 2 MF plans —
1) abc – growth – direct – investing 5k per month SIP
and
2) abc – growth – regular – investing 5k per month SIP (and if I am the agent. I will be earning commissions as agent on this plan)
After 30 years, which plan will give us more benefit.
Return from Direct Plan
OR
(Return from regular plan + trail commission earned by me)
Dear Ashok, can the income to your wife be reinvested at the same earning rate as it ‘ll hapen in Direct plans? Think over it.
thanks
Ashal