Comment on Introducing Coin - our Direct Mutual Fund Platform

Nithin Kamath commented on 28 Mar 2017, 01:54 PM

When you buy mutual funds, the fund house charges an expense ratio. This expense is applied to the NAV everyday. Every fund has a regular and direct option. The expense ratio of regular is higher than direct. This is all done by the AMC, in case of regular they pay commission from the NAV to distributor, in direct no commission is paid. So Direct funds with lesser expense ratio performs better. You can check out the scheme documents for any fund, you will see the expense ratio. This 1.5% upfront and 1% is not charged to you, it is charged to the entire fund.
Shiva, maybe you should google for the difference between direct and regular funds. If you consider regular funds are better, you can continue to invest in the same way without paying Rs 50/month. We will give you a link on the footer of coin website to invest in regular mode in some time.

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