Assuming that one can ask questions on Mutal Funds too, I am sharing my dilemmma with you guys.
I along with a bunch of NRIs wants to invest in MFs. Although my investments are direct equity investments, most of my friends don’t intend to take a direct equity exposure for many reasons. As none can time the market well (to add new positions or to sell when the time is right), we thought of tapping the power of compounding by investing consistently in MFs / SIPs on a monthly basis. Also, consideration is given to invest on a lump-sum basis when the time is ideal.
As direct MF plans would save much money in the long term, we are looking to invest through online platforms given that we are abroad. Although, most of the brokerage companies provide MF services, we understand that those are Regular MF plans. The other alternative would be to go each Mutual Fund house websites to register which should be time-consuming and cumbersome.
In between, we have heard about Invezta / MF utilities /Oro wealth which offers direct MF plans. A quick skim of these websites show that they have free plans up to certain prescribed rupee threshold and thereafter these platforms charge some convenience fee / need to subscribe a plan.
With the above details, we just need to know:
- Has anybody invested in Direct MF plans through online websites?
- Are the investments considered safe through these websites?
- Assuming that the fee / plans charged by them would be a minor in the long run vis-a-vis Regular MF plans, would these online platforms change their terms and charge a percentage when we sell / redeem the units?
- Based on experience, can anyone recommend which is the best / trusted / user-friendly platform one could use to invest?
- Any other considerations / aspects, we need to consider before investing through online platforms?
- Any thoughts on should we start with largecaps MFs or mid /small / micro cap MFs, as they are giving exceptionally good returns at the moment?
I assume that Direct MF plans through online platforms would assume greater significance in light of the current de-monetisation plans and I welcome all your valuable thoughts and experiences on the above.
Just for clarity, I am not recommending any websites or methods of investing above. Just sharing my thoughts to get your valuable views.