POSTED BY March 20, 2013 6:35 pm ONE COMMENT
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Hi All,
I was checking on different ways to start investing in mutual fund. I found this link https://www.jagoinvestor.com/2010/04/what-are-different-ways-of-buying-mutual-funds.html very useful.
I found “Investing through a Demat Account” interesting.
1. It is very convenient.
2. No need to go to different AMCs to get started on mutual fund.
The problem is higher charges. I have to pay commission to the banks.
I checked with SBICap securities about the same. The agent said, there are no charges for buying and selling mutual funds. I need to pay brokerage, if I am buying or selling shares. At present, I am not planning to invest in stocks directly. So if there are no charges for buying and selling Mutual funds, it seems the demat account is the way to go. Please share your thoughts.
If anyone has experience with SBICaps, please share.
Thanks in advance,
Paul
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Dear Paul, there are 2 different options to purchase MFs in your demat account.
1. Purchasing the units from the exchange
2. Purchasing the units from AMC & getting Units credited into demat account.
In case of 1, there ‘ll be additional charges towards brok., STT, stamp duty etc.
In case of 2, there ‘ll be no/very little frontline charges but the impact of trail commission ‘ll eat away your a big part of your corpus, if you remain invested & keep on investing for next 25-30 years.
Thanks
Ashal