Hi,
I am new to mutual funds, I also contacted one financial advisor. He is saying to invest through them. He keeps saying for some funds its better if you spend via Direct for some regular methods can be used.
I want to start investing and would appreciate any suggestions for mutual funds. I would like to go for funds that have tax benefits.
Best
Eeshan
In short, he is earning his bread and butter from you by trying to earn his ever lasting trail commissions from the regular mutual funds that he trying to sell to you. Lets take a random fund for example, the Kotak Select Focus Fund and compare the returns from Direct Vs Regular and have a look at the returns and expenses that you earn or pay over a long period of time. (Click on link here)
If you spend some time on the internet, there are innumerable resources to help you pick the right fund. The simple question you need to ask yourself is; why would you pay your hard earned money as commissions to your distributor?
Another alternative would be to consult a fee-only advisor. Fee-only advisors recommend direct MFs and hence there is no bias when it comes to recommendations.
@zaideesh He is misguiding you and only ensuring he receives his trail commission for regular non-direct investment. There is a conflict of interest. To avoid this you need to contact fee only SEBI registered Financial Planner/Advisor who does not have any interest in any financial product or a fund house. That way the recommendations from him won’t be biased. Some financial planners are indicated here. https://freefincal.com/list-of-fee-only-financial-planners-in-india/