Buy Mutual Funds Directly
You can buy mutual funds directly from the fund house as well as online from your online demat account. However, as far as I know, buying mutual funds directly from the fund house in India is cheap because it will attract 0% Entry Load. If you buy mutual funds online, probably it will attract up to 2.5% entry load. (Well, This is the 6 months old information. One of my friend recently told me that, there is no entry load for online buying also now in India.).
There are many Pros & Cons of buying mutual funds directly from the fund house. One advantage is that, you will receive your NAV statement every month or a quarter in physical form. In case of Online Demat accounts, you will also receive a statement but this statement is not that much in detail.
The only disadvantage of buying mutual funds directly is that, you will have to pass through the tireding paperwork. Which is not the case in case of online purchasing of the mutual funds. Online purchasing of the mutual funds is totally paper less. You can invest in mutual funds directly without no paper work.
Another main thing I want to tell you readers is that, make a portfolio of just 2-3 Equity Diversified Funds, 1 or 2 Debt Funds & 1 Tax Saving Fund. I know several people who are collecting NFOs & Mutual funds in the sake of Diversification. But well, collecting mutual funds in your portfolio is not the Diversification but it’s the Over Diversification. because only one mutual fund contains 30-150 Stocks Portfolio. So keeping several mutual funds in your portfolio means every stock in the stock market is in your portfolio.
Anyways… So Start Investing in the Mutual Funds.