Online mutual fund investments in direct plans
Online mutual fund investments in direct plans may earn you extra returns over a long period of time.But this may have no impact at all if your investment horizon is very short.It’s been SEBI’s continuous endeavor to make more people associated with Mutual Fund industry.Since, there has been a substantial increase in the number of internet users in India for last 4 to 5 years or so,SEBI has had introduced direct purchase of mutual funds using online facility in January 2013. After 5 years since its inception and it’s still gaining momentum and there is still a long way to go.
Though, we know that direct Mutual Fund investment would fetch us some extra returns in the long term but it might have some risk associated with this too.Such as you are investing directly without the help of Financial advisers,this may not be suitable for you, it’s like you are taking some medicines directly without consulting the doctor and more likely you are going to withdraw your investments when market goes down due to lack of proper knowledge.
I am not discouraging direct purchase of mutual funds online. Novice investors are being more dependent on social media platforms and taking financial advises from there.It seems that everyone has become a financial adviser in social media.Quite likely they will not get proper and sound advice from there.
Direct mutual fund is designed for well informed investors and they are managing their wealth using this facility quite well.It’s very likely that novice investors would loose their money significantly for their love for direct plans.Without making their basic right, some novice investors are adding only 5 star rated funds to their portfolio without making proper strategic financial plans for themselves.
It’s not prudent at all that to save some commissions for advisers ,new investors are adding investments in top rated plans through SIPs. Also,they’re withdrawing their investments when market is going into dip.As a result, they are investing when market is in green and withdrawing when market is in red.
It is the right time that investors get one thing straight i.e. they can’t avoid the help of a mutual fund adviser if they are not well-informed about investing in mutual funds.Since, their basic is not right, studies have shown that direct Mutual Fund investors have left the market significantly during market downturn.So, paying up some commissions is a better option rather than loosing money in the long term.Also,I am not saying that engaging a mutual fund adviser would bring all success for you that you are looking for.But it’s better to take help from a person who is more informed than you regarding investment.Because at the end of the day,if someone loses money its only you and none else.
So, be informed and take prudent financial decision with the help of advisers and don’t bother for some 1% extra commission which is better than losing your valuable wealth.Thus,we must consult a Financial adviser when our financial health is in danger likewise we consult a doctor when our health is in trouble.
Come,let’s take the advantage of this direct investment platform meticulously and make India a powerful economic giant and be a part of India’s economic growth.
Enjoy the video of “Mutual Fund Sahi Hai ” video campaign below for better understanding of the online direct mutual funds plans.