Direct mutual funds plans outperform regular plans in 2016-17
SEBI introduced Direct Plans of
mutual funds have turned out to be a major boon for investors in 2016 - 2017 by giving higher returns as
compared to regular plans.
On an average direct plans have
given at least 1% additional returns for investors in equity mutual funds.
Leading schemes like HDFC Top
200-Direct Plan gave 30.23% returns while the regular plan of the same scheme
delivered 29.29%, ICICI Prudential Dynamic Fund's direct plan gave 32% return
as against 31% by regular plan.
Likewise, Reliance Equity
Opportunities Fund-Direct Plan offered 19.65% versus 18.70 % given under
regular plan. What seems like a small percentage could snowball into a large
corpus as this difference will persist and keep compounding every year.
For example, if investors invested
10,000 rupees monthly for 15 years with an average CAGR of 15%, they would earn
? Rs. 78.76 lakhs in direct plans whereas the regular plan would earn them only
? Rs. 67.69 lakhs. A direct increase of ? Rs. 11,07,688 in earnings due to
direct plans, assuming a difference of 0.8% in expense ratios of direct and
regular plans.
Despite, it's obvious benefits only
12% of individual investors have shifted to direct plans of mutual funds. Only
7% of equity funds assets were attributed to direct plans by 31st December
2016, a relative increase of 3% from 4.16% in 2013-2014.
The reason for this reluctance to
shift from regular to direct plans is the perception that transferring to the
direct plans is tedious and time consuming.
MoneyFront, an online robo-advisory
portal that strives to make investment in direct plans extremely accessible to
retail investors has simplified the switch process from regular to direct via
an automated 3-step procedure. All investors need to do, is to upload their
existing portfolio on the MoneyFront portal in a pre-defined format, select
which schemes they want to shift and press execute.
MoneyFront will also analyse the
portfolio and guide investors with long-term and short-term holdings in Debt
and Equity funds, and the choice to switch or not will be the investors
prerogative. This process is 100% paperless and completely online, giving the
investors the comfort of switching their portfolio anytime and anywhere they
choose.
MoneyFront also caters to the needs
of new investors who lack awareness about direct plans. MoneyFront offers an
automated investment advisory that provides model portfolios tailor-made to the
investor's financial goals and risk tolerance levels.
Over and above that, investors have
access to a vast library of news, views, developments and statistics related to
mutual fund schemes and everything else that impacts them.
Moneyfront also provides intelligent
calculators to empower the investor with expected savings, past performance of
schemes, wealth calculators and retirement planning. With this encyclopaedic
level knowledge at their disposal, investors can make a well-informed decision
on the right schemes to invest.
Mr. Mohit Gang, Co -Founder and CEO, MoneyFront.in, quotes, "Direct plans of mutual funds were introduced for the benefit of retail investors for whom every paisa is important. However, retail investors have shied away from switching to direct plans or investing in them due to lack of knowledge on the grassroot level.
Mr. Mohit Gang, Co -Founder and CEO, MoneyFront.in, quotes, "Direct plans of mutual funds were introduced for the benefit of retail investors for whom every paisa is important. However, retail investors have shied away from switching to direct plans or investing in them due to lack of knowledge on the grassroot level.
MoneyFront through our simplified
switch tool and user-friendly investment process ensures that retail investors
conveniently and comfortably can get maximum returns from their investments.
 |
| Mohit Gang, Co - Founder and CEO, MoneyFront.in |
Furthermore, our robo-advisory ensures that new investors, invest in the best possible schemes which are suitable to their risk and return preferences. All we aim for is that retail investors are empowered to become masters of their money through MoneyFront."
Over and above being a 100%
paperless, completely online platform with a simplified investment and switch
process, MoneyFront also offers unique features like investment options for
NRI's and minors, managing portfolios of all family members under one login,
opening joint accounts and an income estimator that enables investors to get a
live update on what they can anticipate from their investments through the
financial year.
Moneyfront will also be launching
its android mobile application in the last week of April, which will put the
process of tracking the portfolios and transacting on the fingertips of
investors.
MoneyFront is the brainchild of three childhood friends all hailing from different companies, yet conjoined with their passion for Investments -Mohit Gang (ex-SVP, HSBC Bank), Anil Bang (Analyst, Marshall Wace) and Puneet Mehta (ex-Director, BOA-Merrill).
MoneyFront is the brainchild of three childhood friends all hailing from different companies, yet conjoined with their passion for Investments -Mohit Gang (ex-SVP, HSBC Bank), Anil Bang (Analyst, Marshall Wace) and Puneet Mehta (ex-Director, BOA-Merrill).
All experts in their domains, they
setup MoneyFront with a single-minded objective to enable investors to get more
returns from their investments. Within merely few months of inception,
MoneyFront.in has become synonymous with direct plans of mutual funds, has
achieved critical acclaim and over 3,500 signups.
GET IN TOUCH
505, Crystal Plaza,
Satam Wadi,
Andheri - Ghatkopar Link Road Opposite Solitaire Park,
Andheri East Mumbai - 400 099.
Maharashtra
Phone 91-22-4543 2000
Email id: support@moneyfront.in
https://www.facebook.com/moneyfront/
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