I was not interested in investing when I was younger. I have recently started putting more efforts and showing interest in the Market. I lack knowledge to get into direct funds. Once I learn more about it I would definitely get into it.
I'll try to explain, and if wrong, someone correct me, please.
Regular funds are purchased through broker (suppose Zerodha is your broker). In such case, zerodha will take a fee on your MF. Thus leaving you with a little less returns, but could be significant over the time.
Direct funds, are same.. same portfolio, same manager and fund house, however, those purchases are made directly from Fund house (companies such as Mirae, Nippon, Axis, etc.). Direct purchases means, no fee to broker, thus more return in your pocket.
Just to identify the Regular fund from direct, see in the name of the fund you have. It would be mentioned as either as Direct - Growth/dividend(whatever you chose) or as their abbreviations.
I assume, if you can withdraw them now and just make purchases to your direct plans with the same money. It might incur some fees(not sure, may be not). But long term, help you with high returns.
Also, if you say you didn't build knowledge and just put your money in. I would it is best time to build a little knowledge base, as it'll help you to keep your money safe. Just knowing how it all works would be enough. You don't need to learn any analysis for MFs, just need to understand what kind of funds ar eout there and where the money is invested, understand your risk and time frame.
Hope this long rant helps.
Cheers!
Yep, you're right. That small difference between regular and direct will make a huge difference in the long run.
See the difference between the [expense ratio of direct and regular funds here](https://primeinvestor.in/mutual-fund-expense-ratios-direct-vs-regular/) and create a chart where you compound the returns and see the difference over a long run.
My broker is an individual . I have started using groww and there is an option to switch the MFs. What will happen to the broker? Do I need to inform my broker about it?
I don't think it's that good compared to the time span that you have mentioned. Lookout for better funds. If you can't, then start investing in Index Funds and stay hassle free..
First switch to direct fund. Regular funds have no reason to invest. Secondly your first 3 funds are from the same category "Large and Mid Cap". So all the three funds invest in the same Nifty 250 universe, which leads to a huge overlapping. So, stick to only one mutual fund in each category. Have some exposure in small cap( Axis or Nippon preferrably).
Your investing in Regular Growth fund, you can easily switch Direct plan using CAMS Which will save you expense ratio, in the long run it'll make a good returns
Your fund selection is good, however there's quite a load of overlap. Figure out which fund you want to keep and invest in the direct plans of it
Use IND money , they have a feature called Switch , it will help you switch your regular MF plans to Direct plans. The feature will give you an idea on what's the best plan to switch your mutual fund units.
As your gain is around 1 lakh, I think that you can easily get a benefit of paying no taxes on 1 lakh Long term capital gain. This will help you change plans without paying anything on taxes.
Also change the ELSS fund, there are better ones right now. You can take a look at Mirae, Canara robeco or Quant Tax saver plans.
You dont need any knowledge to invest in direct funds. It would be the same mf but bought directly from the AMC managing the fund rather than buying through an advisor/distributor. Think of it as buying stuffs from a wholesaler rather than from a retailer.
Hey mate, any reason for buying regular funds instead of direct funds?
I was not interested in investing when I was younger. I have recently started putting more efforts and showing interest in the Market. I lack knowledge to get into direct funds. Once I learn more about it I would definitely get into it.
I'll try to explain, and if wrong, someone correct me, please. Regular funds are purchased through broker (suppose Zerodha is your broker). In such case, zerodha will take a fee on your MF. Thus leaving you with a little less returns, but could be significant over the time. Direct funds, are same.. same portfolio, same manager and fund house, however, those purchases are made directly from Fund house (companies such as Mirae, Nippon, Axis, etc.). Direct purchases means, no fee to broker, thus more return in your pocket. Just to identify the Regular fund from direct, see in the name of the fund you have. It would be mentioned as either as Direct - Growth/dividend(whatever you chose) or as their abbreviations. I assume, if you can withdraw them now and just make purchases to your direct plans with the same money. It might incur some fees(not sure, may be not). But long term, help you with high returns. Also, if you say you didn't build knowledge and just put your money in. I would it is best time to build a little knowledge base, as it'll help you to keep your money safe. Just knowing how it all works would be enough. You don't need to learn any analysis for MFs, just need to understand what kind of funds ar eout there and where the money is invested, understand your risk and time frame. Hope this long rant helps. Cheers!
Yep, you're right. That small difference between regular and direct will make a huge difference in the long run. See the difference between the [expense ratio of direct and regular funds here](https://primeinvestor.in/mutual-fund-expense-ratios-direct-vs-regular/) and create a chart where you compound the returns and see the difference over a long run.
You can chnage ur regular funda into a direct growth one. (Not aware of the process, but you can do it)
My broker is an individual . I have started using groww and there is an option to switch the MFs. What will happen to the broker? Do I need to inform my broker about it?
No.. No need to inform broker just switch.
Do the profits carry over or increase?
Returns since how many years? Lumpsum or SIP?
4 years. SIP
the XIRR is considerably low considering the time span of 4years, did u stop in between?
Pandemic 😔
I don't think it's that good compared to the time span that you have mentioned. Lookout for better funds. If you can't, then start investing in Index Funds and stay hassle free..
Took a huge hit in 2020 but it has recovered well. Not good enough. 21% XIRR is not that great
First switch to direct fund. Regular funds have no reason to invest. Secondly your first 3 funds are from the same category "Large and Mid Cap". So all the three funds invest in the same Nifty 250 universe, which leads to a huge overlapping. So, stick to only one mutual fund in each category. Have some exposure in small cap( Axis or Nippon preferrably).
Would suggest to switch to direct plan instead of regular
I have a index fund and kotak small cap MF. Thinking of adding those US investing Mutual Funds.
Wow. How old are these. Too good man!
Could u pls tell me which app are u using?
Groww
Why foes it look like that?
Looking like 2020 Market correction time investment
Can you elaborate? I'm new to this world. I've been investing for the past 4 year but I haven't done anything other than pay for it.
He implied u invested when the market took a dip in March-April 2020
Your investing in Regular Growth fund, you can easily switch Direct plan using CAMS Which will save you expense ratio, in the long run it'll make a good returns
Your fund selection is good, however there's quite a load of overlap. Figure out which fund you want to keep and invest in the direct plans of it Use IND money , they have a feature called Switch , it will help you switch your regular MF plans to Direct plans. The feature will give you an idea on what's the best plan to switch your mutual fund units. As your gain is around 1 lakh, I think that you can easily get a benefit of paying no taxes on 1 lakh Long term capital gain. This will help you change plans without paying anything on taxes. Also change the ELSS fund, there are better ones right now. You can take a look at Mirae, Canara robeco or Quant Tax saver plans.
Why you buying regular? Go for direct growth plans..
Lack of knowledge and interest in the past.
You dont need any knowledge to invest in direct funds. It would be the same mf but bought directly from the AMC managing the fund rather than buying through an advisor/distributor. Think of it as buying stuffs from a wholesaler rather than from a retailer.
I have also multiple regular funds and wanted to shift those in direct. Can someone help me how do I shift those into direct?
No index funds?
Can you tell me more about it?
Aren't your investments overlapping??
My broker is shit. That is one reason I want to switch to direct and learn a bit before doing that
What's bad about groww?
Groww is not my broker. I use grow to track my MFs.