hello, I am planning to start investing in mutual funds. Before this i never invested in MF\’s. while surfing this site and few others i come to know about different ways to invest in MF\’s. Also come to know that there will be 2 types of MF’s for each scheme i.e. regular and direct. Also come to know that direct is beneficial in the long term and in regular fund houses pays commissions to distributors which reduces the NAV.
This is what i know, now i have some questions as given below:
1. Which platform i should use to invest in MF\’s thru SIP? I have following options Reliance money demat account : It charges 15+tax for per SIP transaction. But i dont know if direct and regular both options can be available here.
Citi bank investment account: dont know the charges and also dont know if direct and regular both options will be available or not.
FundsIndia account: They dont charge user directly. but all the investments will be in regular type scheme. no direct scheme available. and they get some commission from mutual funds houses.
regular way of investment by filling the form and submitting. and starting ECS for each SIP.
2. Does the commission fundsindia gets from mutual funds houses is extra burden on users poltfolio value or it gets included in the reduced NAV of regular scheme which is lesser compared to direct scheme.
3. How much tough it will be to invest directly i.e without going thru the distributors?
I am planning to invest 7-10k per month in different Mutual funds. Planning to start SIP. I am not much expert in this area so can not exactly tell when to stop investment in certain mutual funds. Fundsindia mentioned that they will do portfolio analysis periodically but not sure whether they will really do.
So please suggest me how to proceed. Also please answer the questions asked above and correct me if any of my understanding is not correct.
Thanks in advance.