Some hard points worth addressing ..?

I think your commission has been stopped too.

You rather take care of your 300 followers. I have been into Business for years more than your age. Digital FARRE bhecho

Times has changed people are not fool. 1-2% extra isn’t a small amount in long term. If groww charges now where they earlier? Mutual fund itself is managed by experts normal advisory is enough. People shouldn’t buy regular mutual funds

Do you know the difference between: - Returns in mutual funds - Risk adjusted returns in mutual funds - Returns per unit of least risk taken Where are SIF better in comparison to other mutual funds? Please refer AMFI data in this screenshot. get your head around it.

I completely understand where you are coming from and what you have at stake. But you are factually incorrect in a critical part. When you say '"kitna commission bachaoge - 1%/0.5%", you should know that this 0.5% compounds over time. In the chart he has shown, total commissions is 6% of terminal value. That 6% in 12 years becomes ~20% in 30 years. I'm not sure if the customer behaviour point you mentioned can really be offset with returns vs high commissions over time.

Karan, kindly refer to the statistics from AMFI. Only 7% of direct MF investors stayed invested for five years for regular. It is 23% who stayed invested for five years. There is also SIP data Now you make the judgement who saved the commission and who made the wealth

Yup, I saw that chart. The real issue is whether an investor prioritises cost/returns or prioritises their behaviour. - For someone who feels their primary risk is behaviour (they may not be able to stay disciplined), for them regular plans work - For someone who can be disciplined and values the cost/return, direct plans work There is a market for both. I personally feel the future of advisory should be flat fees (like an RIA) and direct plans. It is a win-win.

Very too. That is the ideal case and market will eventually move towards that only. However, a critical case would be safe for last two years. Market did not provided any returns, from Indian consumer perspective. It will be very tough for an advisor to justify the fee.

That is true for a mutual fund distributor too. I know the commission is not going from the pocket of the investor when going regular, but it is in his interest and the client's interest to ensure the client remains invested. A good advisor will do the same.

Valid Points Rajat, it's just a marketing stunt from Mr Kamath - The expense ratio math is real. Direct plans DO compound better — on paper. But that comparison assumes identical investor behaviour in both cases. Same fund selection. Same discipline through a 15% drawdown. Same SIP continuity when the news cycle turns ugly. The 0.5-1% expense ratio saved on a direct plan means very little if the investor panic-sells at the bottom or chases last year’s category topper into the next one.

Ppl don’t understand, that it is customer behaviour that will make them money. Secondly,ppl think they made right fund selection,w/o knowing treynr / soritino ratio.they don’t know opportunity cost they missed elsewhere because of lack of knowledge

Absolutely, it's the nuances that matter, and it certainly requires skill and expertise to choose the right fund aligned with the goal. In a broader bull scenario, every fund will generate alpha but the scenario is cyclical and the one who stays invested patiently gets rewarded. MFDs and other intermediaries play a crucial role in ensuring the longevity without getting perturbed by the short-term term hiccups. Some MFDs function purely for commissions - there are black sheep in every herd not just in this ecosystem.

what data have you shared to substantiate your point ?

You have raised right question.Even u didn’t bother to check online and we expect people to check online and then do investments. Indirect funds. Well for your answer. Refer the screenshot and it has source also mentioned which can be checked at AMFI data site. Just Shortcuts

there are many fixed fee investment advisors whose clients take the direct route. I don't think it is fair to assume all direct = self managed.

That I agree Sir.however, Kamath rarely talks about advisory .. more so on direct plans..but evades hard questions. I am absolutely in favour of advisors. Even I used to charge fee earlier

He has clearly written “Direct Mutual Funds are a no-brainer if you are a DIY investor”. Same as if you directly buy shares via Demat account and panic sell it.

Rightly post by him was Dig on GROW going regular.Also, if you would have seen Thomas‘s post on promoting one of the Insurance platforms as unbiased etc,around 2 yrs bk on LinkedIn, he did not disclosed that he was an investor in that company.likwise

More than looking at it as a dig, we need to appreciate him for giving a platform for everyone to buy direct MF. Obvious that the person going direct takes all the risk. Can’t cry after a panic selloff. Promoters promoting their investment is common sense.

Yes, we should give him a credit for that.. for sure🙌🙌

So how much of wealth has been created by mutual fund investors in indirect category ?

Ok. Answer 1 thing. Do ultrarich invest into direct mutual funds Our affluent investors investing into direct mutual funds And have they lost money? Problem is insaan bhikhari mentality sey bahar nahi aata hai aam aadmi sonchta hai 0.5% hi uska return hai.he has achieved anthony

Effluent invest in big ticket real estate, hedge fund, PMS, overseas funds, mutual funds are small portion of their portfolio. The services availed by effluent investors are not accessible to aam admi

They get services mostly from advisors who were LIC agent now selling Ulip and mutual funds. They first pitch insurance products like endowment policies saying guaranteed return if you persisist then they will talk about mutual funds

AMFI should share a study: A. No. Reg MF distributor B. Their client's performance C. How many client/ valuewise outperformed benchmark If these MF distributor are not able to advice on top performing MF, then this 1% is abs waste of money and MF distributor are useless

Very true. Equally companies, which on excuse of discount brokerage, give SASTA NASHA of Option trading whr 90% of investors are actually losing money and only institutions make money, speculation on discounted pricing should not be allowed, rather it should be priced upwards

Advisors pushing wrong products was one issue that led to the growth of direct MF, at least for me. Investors got educated and chose themselves. Do you have this SIP data of a nifty index fund direct vs regular, that can give some deeper insight on what you are saying.

I agree. Even in yesterday years, it were actually bank RMS and not MF D who used to invest clients money in anyone of the regular funds, take upfront commission and in a few months, switch them to another funds so as to earn multiple times.

Well put

Sir,2 yrs back, Kamath had shared a very big post on LinkedIn on Insurance and demanded all other form of insurance selling. And showed how Ditto(if I ain’t wrong) company is doing great. Made it sound like he genuinely cares,with no dissclosure that he was investor in that co.

Whenever ANY business chap puts out holier than thou posts at any time, it is to be viewed with suspicion.

Very true Sir. I shall keep note . Never thought that way

Spot on mate

Slipper shot reply

The post by the editor was appearing as a bootlicking post .. nonsense and biased post are just Marketing through OTHER means

What stops people from selling their regular MF plans on groww? This post was in response to groww launching regular plans.

@DelJargon in simple language, what is the O.P. trying to say?

No one is advising the buyers in regular funds in mf platforms. If you do have an advisor, what you're saying mabe correct, but it's completely wrong for platforms comparable to Zerodha's Coin. The datapoints you are using for comparison are very misleading. Seems like you may have something to gain from people investing in regular funds.

Shashank. It’s AMFI data that is saying it loud . 23% of regular investors stayed invested for 5 yrs or more Vs 7% of regular investors stayed invested for 5 yrs. Even if you leave me aside, which investor gained. There is always limit to what u can save .the catch is upside

Sir ek baat mujhe samajh nahi aati hai ki sabh kuch direct direct kar denge toh mere jaise log kya karenge aur aise bhi 1% commission toh milta toh hai nahi Agar sab direct kar denge toh massive unemployment problem hoga joh inko pata hai nahi

Aur Yahan govt villages me auto ton ko insurance agent bana rahi hai employment ke naam par ..!! Jo achhe mfd hain woh sambhaal lenge apna kaam

MF distributers thrive in India because on a broad level, there financial illiteracy among us. And we are too busy (or poorly conditioned) to actually spend time to understand the products. Taking a chunk of AUM of the investor to give advice on what MF to pick, with no accountability, no stake, and the ignorance of the investor to not realise what regular vs direct is - this isn’t managing people, this is arbitrage on lack of financial literacy. No argument justifies this parasitic behaviour.

Bhai problem kya hai direct and coin se... ? Are you saying direct , no ccomission is bad ?

Lol kya chomu hai takla... Its like asking a barber whether you need a haircut. Apni 1% commission ke liye kya kya backchodi karni padti hai babu bhaiya

1% fractionally charged daily on total portfolio value with growing NAV is quite higher than 1%, and compounds criminally over the years. Investors saving this amount are not of "middle class or lower class mentality" as you derogatorily put it, but just too smart to be fooled.

₹5-10 bachaya Do you lack basic reading skills?

Please go through AMFI data as direct investors, only 7% state invested for five years. Investor, don’t make money by saving commissions, investor, make money by their investing behaviour Do the rich or ultra go for direct plans? If they do, it is with Advisory.

It’s Nithin not Nikhil btw

I can't believe I'm saying this but; Correlation =\= causation

I agree that we should not care about some charges when the goal is big, but in this age i hardly know any MFD who actually advices on anything. They just talk to you till the moment you are a lead. Once you are a client, they disappear. So why give even 1% more?

Yes direct MF’s undermine the importance of MF’s in investors financial journey. Many people who redeem the units actually when they had to invest more, reduces their chances of generating that alpha which they miss out.

You have rightly quoted this Amit , and it was that I was highlighting . I have also enclosed numbers. Only 7% of direct investors stayed invested for 5 yrs vs 23% of regular investors