Why choose direct mutual funds

Mutual Funds are assets that one can invest in to seek returns on a short or long-term basis. These funds are managed by Trusts or companies. A Direct plan is a plan bought directly from the mutual fund company while a Regular plan is a plan bought through an advisor, broker or distributor, also known as intermediaries. 
The expense ratio is higher for a regular plan as the mutual fund company pays commission to the intermediary which is then recovered as an expense from the plan. Therefore, for an investor, Direct mutual funds are more beneficial, the return you make on a direct plan is higher by approximately 0.5% for equity funds and approximately 0.2% for debt funds.

Direct plans are offered by all AMCs on their personal portals online. One can invest in many funds at the same time directly, so it becomes cumbersome and difficult to keep track of all investments while visiting multiple portals. There is a new trend catching up in the market where access is given to major AMCs at a single portal for easy handling of direct plans. One can invest in direct plans of mutual funds using ORO.

Oro wealth is India’s first zero-commission investment platform which will allow investors to buy direct plans of mutual funds from all AMCs at one place with the same convenience and level of service as regular plans, for a small, one-time convenience fee. It offers one-click investing across direct funds and a single login to track yours and your family’s investments. ORO also makes switching your existing investments to direct format less cumbersome and user friendly.