Direct Mutual Funds - Are they Suitable for All Investor??
Introduction In the ever-evolving world of investments, direct mutual funds have gained significant attention for their potential benefits. These funds allow investors to bypass intermediaries like brokers and distributors, enabling them to invest directly with the asset management company. While this approach may seem enticing due to lower expense ratios, it's crucial to understand that direct mutual funds are not suitable for every investor. In this article, we will explore the intricacies of direct mutual funds, their advantages, limitations, and why they may not be the best choice for everyone. The Basics of Direct Mutual Funds What Are Direct Mutual Funds? Direct mutual funds are investment instruments where investors buy units of a mutual fund scheme directly from the asset management company, without the involvement of intermediaries. In essence, investors self-manage their investments, from initial purchase to redemption. The Advantages of Direct Mutual Funds 1. Lower Expen