One reply on this article “Pros and cons of buying MF directly from AMC or Demat account or Agent?”

1. justgrowmymoney says:

   November 14, 2011 at 9:46 pm

   From Demat Account:
   + The company where you hold Demat acc may provide you advice for building your portfolio
   + SIngle view access for stocks and MF. COnsolidated portfolio report can be generated
   – You may incur charges for buying both lumpsum and SIP. If not this is the best option.

   Agent:
   + Entry loads having been abolished now buying thru agent is no different. You may get advice from the agent on which funds to choose. A consoidated MF report may be just a call/SMS away.
   – However in practice there is rampant misselling. Agents just advice any fund to anyone without taking risk taking capacity into account. Eg: Reliance Banking is a thematic fund that can generate good returns in the long run. But is someone needs to park funds for less than 6 months then a short term debt fund is the way to go. The upfront and trail commissions are higher for euity funds so you generally wont see an agent selling like debt/treasury oriented funds!

   Direct:
   – Sepearate id password for each AMC though you can get consoildated reports in CAMS and Karvy websites (this will cover 90% f the funds)
   – You need to do the paperwork upfront
   + Advantageous if your demat account provider is charging you for buying MF (which is why I do a direct with the AMCs. My folio had only 5 funds across 2 AMCs)

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