Comment on Introducing Coin - our Direct Mutual Fund Platform

Milind Patel commented on 11 Aug 2017, 02:17 PM

Hi Nitin,

First of all, Thank you very much for introducing this revolutionary model to invest in MFs.
I have gone through the various link that you have posted to weigh on the benefits of investing in the Direct Funds. I still struggle to nail it out. To make it simpler, Let’s say:
I want to invest 11K Lumpsum in a Mutual Fund. There are Mr A and Mr B who invest in Regular and Direct Plan of the same MF respectively.
The NAV at that day is as below:
Regular: 10
Direct: 11

So, Mr A (for Regular Plan) gets 11000/10 = 1100 Units
Mr B (For Direct Plan) gets 11000/11 – 1000 Units.

Let’s say after 3 years both sells their units and on the selling day the NAV of Regular plan is 20 and Direct is 21.
So, Mr A gets 20*1100 = 22000
and Mr B gets 21*1000 = 21000.

So there is in-fact a loss with the investment in the direct plan. Could you please explain this.
Milind Patel

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