In the direct mutual fund your money will route directly into mutual funds without any mediator or commission agent in between . Direct mutual fund plans were introduced by the SEBI in January 2013. It made mandatory for all mutual fund houses to launch Direct Plans for all schemes.
You don’t need to pay any commission to agents as the transactions can be performed online or even physically by visiting the registrar’s or the asset management company’s office. The expense ratio for a Direct Plan is lower as compared to Regular Plan.
Here are different ways to invest in direct mutual funds online.
Asset management company : You have to decide in which fund you want to invest and visit the nearest AMC office or its website to invest in mutual funds. You can invest in mutual fund schemes directly through the online portal of the Asset Management Company. If you have multiple funds, register and invest in each fund house individually. It will cause inconvenience if you invest in number of schemes from different fund houses.
Invest through a broker : You can invest in mutual funds by opening a demat account in a brokerage firm. Zerodha is India’s largest broker and offers free direct mutual funds investment. It has a platform called ‘COIN ’ which offers absolutely free Direct Mutual funds investment . To open a zerodha demat account, click here and start investing in mutual funds through it.