Скачать или смотреть Why you should not choose direct mutual fund investing platform?

What if a lawyer offers to fight a case on your behalf for free, would you take it? If the answer is no, why would you accept the same offer from a mutual fund advisory? The answer is not simple. To understand the basic difference between direct mutual funds and regular mutual funds, you will have to understand what happens behind your eyes. The vast majority of retail investors are completely unaware of how the distribution/brokerage model works. In this article, I will explain it to you in detail so that you can be the judge and decide which one is better for you.Their business is only viable if done on a mass scale as they earn only a few basis points of the total expense ratio. Most asset management companies don’t have a distribution reach beyond their immediate circle of influence. Also, it is not feasible to hire a very large sales team. Hence, they all rely on external sources to help get new investors’ money into their mutual funds and increase the assets under management. The external sources that help increase the total investor base and amount are known as distributors.These distributors are responsible to convince investors to invest in a particular mutual fund scheme. They don’t charge the investor any fees for their services because they are getting a commission from the fund houses directly.