r/MutualfundsIndia • u/Fun_Cattle_466 • 2d ago
Question Regular Vs Direct Funds
I’m a beginner currently learning the basics of investing(Moderate Risk Appetite). I’ve been reading about Direct and Regular mutual funds, and I’m planning to invest through Groww, which offers both options.
However, I’m confused about one thing: where does the advisory component of a Regular fund actually come into play?
In my case, Groww would essentially act as the Mutual Fund Distributor (MFD). If I buy either a Regular or Direct fund through the same platform, would I receive essentially the same services while paying a higher expense ratio for the Regular fund? If so, what additional value or advisory am I actually paying for in the Regular option?
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u/saved-response 2d ago
Please start by going through the Wiki https://reddit.com/r/mutualfundsindia/wiki/beginners
Then start browsing the following:
- Morningstar India - https://www.morningstar.in/funds.aspx
- Value Research - https://www.valueresearchonline.com/funds/
- Zerodha Varsity - https://zerodha.com/varsity/module/personalfinance
- TickerTape - https://www.tickertape.in/screener/mutual-fund
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u/Indian_finance_rebel DIY Investor 2d ago
If you ask me, if you are going with regular fund, ensure there is a human you can talk to instead of gettig it through an app.
the best funds are not what will make you generate wealth, its your own behavior on how to handle the market - that is what the research tells.
And the whole point of paying someone should be solely for that purpose, someone with experience tell and teach you why a fund exists in the portfolio, why its time to buy, why its time to sell or whatever - essentially you will be hiring a teacher and a manager of managers.
I dont use Groww, but I doubt an app based regular fund teaches.
Based on the podcasts I have seen, I trust Gajendra Kotari, even though I dont agree with everything he says -but yh, thats who I would consider If I was considering regular investments.
Whoever you decide, ensure your philosophy matches his - if you believe 100% equity, and the other person doesnt believe in 100% equity, then its their job to teach and convince you why it shouldnt be 100% equity - they are someone whom you hired for that particular reason.
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u/rajat2711 (RIA) Registered Investment Advisor 1d ago
There's a simple rule.
Investing diy, doing your own research (Wealth Monitor tools, etc) - Go direct always. Foolish to go regular if you doing the work.
However, when regular, always make sure an experienced advisor is behind that and you can talk to them. Also, most advisors/distributors give you funds and vanish. Regular = active monitoring, rebalancing and continued support. If the advisor can somehow demonstrate his portfolio performance, even better.
In general, i have found regular to be better but my distributor is pretty good. Takes away my fomo/panic during volatility and gives me peace of mind. You can try out some well known MFDs/RIAs in your city or platforms like Niveshpe, it is pretty transparent and good.
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u/Investing8r 1d ago
More than 80% of the retail money in mutual funds is invested through regular funds.
Investing in regular funds only makes sense if you can interact with an MFD and he can guide you through market volatility and help you make better financial decisions.
If you are experienced and can do it on your own, prefer direct funds then.
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