Are you are the one who invests in Mutual Funds using your Demat Account or who loves its convinience? Well the good news is Reliance Money has finally revised its Mutual Fund Investment Fee with effect from 2nd February 2010.
As you might be aware SEBI had removed Mutual Fund Entry Load and had given the option to distributors to charge directly to the customer for the services they offer while investment.
Here is a comparison table for Mutual Fund Investment Fee for two biggest Demat players in India – Reliance Money & ICICI Direct.
per transaction cost means it does not matter how much you invest. The charges are flat.
For ICICI Direct 8 Lac slab - the "cumulative value" will be taken as per Value at NAV of entire MF holdings, at the time of order placement, as seen on MF Unit Holdings page. Transaction charges will be applied as per the new fee structure, accordingly.
I would add more fee of more Demat Accounts as I get information about the same.
But even with the convenience of Demat Account, I still prefer direct investment in Mutual Funds via their respective online platforms. Recently more & more Fund houses are going online.
Other than this if you are looking for consolidated investment in MF from one single platform then new distribution models like – www.fundsindia.com & www.fundsupermart.co.in comes very handy. I have a short review of both here. I would be doing detailed review of the service providers very soon.
One question that I find new investors often asking is - Do I require Demat Account to invest in Mutual Funds?
Ans - No you do not require Demat account to invest in Mutual Funds. Infact investment in Mutual Fund through Demat account is costly and investors should prefer alternate channels for investment in MF. For details you can check out my previous post on How to invest in Mutual Funds?
You uploads are very informative. Keep it up! Can you comment on Investment Services Account of HDFC Bank which they have launched for purchase of Mutual Funds online... including from other fund houses also.
ReplyDeleteमैं आपके इस ब्लोग का नियमित पाठक हूँ. मेरी कई शंकाऒं का इसमे समाधान मिल जाता है. कृपया इस पुनीत कार्य को जारी रखे.
ReplyDelete@ Mukesh
ReplyDeleteThanks for your encouraging words. Let me know what else would you like to read about.
Amit Sir,
ReplyDeleteI am grateful to you for your response and your noble work. In days of mis-selling by financial service providers, your work is unique. Please keep it up.
I request you to start a series on Financial Planning for Dummies.
Mukesh Pandya
Amit, why do you continue to prefer to invest directly at the company websites? Isn't an online account easier, and allows tracking your portfolio better?
ReplyDelete@ Simon
ReplyDeleteI agree its a lot easier to have all the consolidated portfolio at one place. For that I maintain my excel sheet. And also I don't transact very often, I have a few SIPs running and buy Mutual Funds may be 1-2 times a month. So it doesn't matter much for me.
Moreover I feel why should I go through a broker or agent when I can invest direct. The way SEBI is acting in favor of investors may be in future they would ban "Trailing Fee" paid to brokers and may be direct investors would gain then :).
hi expert,
ReplyDeleteneed your advice. i am new to investment.
looking to buy different MF's as lumsum every month. like 5k each month to same or different MF's. Some1 told me its better to invest in lumsum as u can change to different MF's as u see its growth graph.
query-
1) How to buy them online with least trans fee
2) benefits of buying Lumsum verus SIP.
regards
KK