I paid ₹13 Lakhs in Commissions to my Mutual Fund Agent | Direct versus Regular Mutual Funds
In the world of mutual fund investing, the choice between direct and regular plans can significantly impact your financial growth. Using an apple tree as an analogy, I explain in this short video the the essence of direct and regular plans. But only considering returns is not right and before one brushes it off, if your advisor is actively managing your funds, providing valuable insights, and enhancing your returns - that missing apple might seem justified
However, for simple long-term investments like SIPs (Systematic Investment Plans), I am of the opinion that sacrificing that extra apple for advice is not justfied. To put it in numbers -- say you heed the advice of a mutual fund agent and initiate a monthly SIP of ₹10,000 in a regular plan. Over a 20-year tenure and assuming an 11% return rate, your accumulated corpus would amount to a little over ₹87 lakhs. Instead -- if you had opted for the direct route, enjoying a 12% return instead, then your corpus would have soared close to the ₹1 crore mark. To put it differently -- the difference of ₹13 lakhs is what you've shell out as commission to your mutual fund agent over the last 20 years -- which I think it a bit too much
So remember, whether you prioritize convenience or maximizing returns, always weigh your options carefully to ensure your money works as hard as you do. After all, in the journey towards wealth accumulation, every apple counts.
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Disclaimer: I am not a SEBI registered investment advisor or research analyst. I am not registered with PFRDA or IRDA either. The content posted on this platform is purely for educational purposes and none of it constitutes investing or trading advice. Viewers should do their own research and diligence before investing or acting on the information presented. Some of the links I have posted in the video, the description, the comments and other related resources might be affiliate links
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