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 offers an automated investment advisory that provides model portfolios tailor-made to the investor's financial goals and risk tolerance levels. MoneyFront also caters to the needs of new investors who lack awareness about direct plans.
This process is 100% paperless and completely online, giving the investors the comfort of switching their portfolio anytime and anywhere they choose. 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. 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, 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. Only 7% of equity funds assets were attributed to direct plans by 31st December 2016, a relative increase of 3% from 4.16% in FY 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. A direct increase of ? 11,07,688 in earnings due to direct plans, assuming a difference of 80 basis points in expense ratios of direct and regular plans.ĭespite, it's obvious benefits only 12% of individual investors have shifted to direct plans of mutual funds. For example, if investors invested 10000 rupees monthly for 15 years with an average CAGR of 15%, they would earn ? 78.76 lakhs in direct plans whereas the regular plan would earn them only ? 67.69 lakhs. What seems like a small percentage could snowball into a large corpus as this difference will persist and keep compounding every year. Likewise, Reliance Equity Opportunities Fund-Direct Plan offered 19.65 percent versus 18.70 percent given under regular plan. 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.
On an average direct plans have given at least 1% additional returns for investors in equity mutual funds. SEBI introduced Direct Plans of mutual funds have turned out to be a major boon for investors in FY 2016 - 2017 by giving higher returns as compared to regular plans.
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