Fyers direct : Best direct mutual fund platform?

Fyers recently introduced their mutual fund platforms - fyers direct. Fyers direct allows buying of direct mutual funds through its platform. Normally mutual fund platforms provided by brokers (except zerodha coin) allow buying direct funds. 

All mutual fund schemes offer two plans - direct and regular. Direct funds are normally sold through mutual fund advisors or agents. Regular mutual funds normally have higher expense ratio since agent commision also included in it.

Direct mutual funds are sold directly by fund houses. Direct mutual funds have less expense ratio since no distributor commition is involved in this. It will result in higher NAV and better returns. In long term, this will help you earn more return than from a regular fund. 

Fyers direct is new direct mutual fund platform. There are many other experienced players like groww (recently started stock broking ), kuvera who provide direct funds through their platform. But holding mutual fund units in broker platforms like fyers direct have another advantage. Mutual funds purchased through fyers direct are directly credited to your demat account, not in any virtual wallet like other platforms. You can access your equity holdings and mutual funds through your demat account.

Advantages of direct mutual fund vs regular fund

There are some advantages for direct fund over regular fund

1. Less expense ratio

Expense ratio is amount charged from investors returns for administrative expenses. Expense ratio in direct fund is less than regular fund since no intermediary is involved. Regular fund normally have higher expense ratio because it includes agent commision also. 

2. Higer NAV

NAV of direct fund is normally higher. Lower expense ratio in direct fund results in higher NAV. 

3. Higher returns

No agent commision results in higher NAV, which means higher returns on your investment.  

4. Simplicity

Since agent or intermediary is not involved, makes buying direct fund a lot simpler. An agent may mis sel a wrong mutual fund product or even ULIP to get higher commision. But using direct fund platforms like fyers direct, grow app or kuvera, you can study and compare funds yourself and buy directly from there. 

How to buy direct mutual fund

From where we can buy direct mutual funds? Many of you have asked me this question after watching our fyers direct mutual fund video. We have many options to buy direct funds now. I have listed some of them below.

1. Directly from fund house website

You can buy funds directly from mutual fund house website. You have to register in their website by giving details and doing KYC.

2. From direct mutual fund selling apps

There are many direct mutual fund selling apps like groww, kuvera etc. In these apps you can get all details about funds and also compare different funds.

3. From direct mutual fund selling broker platforms

Now some stock brokers also started to sell direct funds through their mutual fund platform. Zerodha coin and fyers direct are direct mutual fund platforms by zerodha and fyers.  You can get all details about funds. You can also compare different funds and select best one which suits your needs. Another advantage of buying through broker platforms like fyers direct is, the mutual fund units you baught through them is credited in your demat account. You can see all your equity and mutual fund holdings in one place.

4. MF Utility application

Mf utility is a mutual fund application by mutual fund association. You can buy, sell or switch mutual fund units using this app.

You can watch video in our youtube channel share market Malayalam to know more about benefits of direct mutual fund and fyers direct platform. In this video difference between direct fund and regular fund is also shown with calculation.