Why does commission in investing matter?

Commission fees have long been a significant factor to consider when investing. However, with the rise of direct funds that offer zero commission, investors now have a game-changing opportunity to enhance their investment strategies.


In this blog, we delve into the importance of commission in investing and shed light on the benefits of opting for direct funds with zero commission. By understanding these key aspects, you can make informed decisions that align with your financial goals and maximise your investment returns.


1) The Impact of Commission on Investment Returns:


If you have invested in a mutual fund through a distributor then you have invested in a regular plan with commission.


Commission fees might appear small and insignificant while choosing a fund. But these commissions can eat into your investment returns, reducing the overall profitability of your portfolio.


A fee of 1.5% annually adds up to 35% in 20 years. This reduces the value of your corpus signifocantly.


Calculate how much commission and fees you will save by switching to a direct plan here. 


2) Introducing Direct Funds with Zero Commission:


Direct funds eliminate the middleman and offer investors the opportunity to invest directly in the underlying securities without incurring any commission fees.


Investing in direct funds with zero commission can help you save significantly on transaction costs, allowing more of your investment capital to work for you.


Each mutual fund has a direct and regular plan. If you are already investing in a regular plan and you want to save the commission and fees then you can easily switch the regular plan to a direct plan.


This switch is absolutely free and doesn’t require any paperwork.



3) Cost Efficiency and Transparency:


With zero commission direct funds, you have full visibility into the costs associated with your investments, ensuring transparency and better control over your investment expenses.


Eliminating commission fees helps investors optimise their cost efficiency and align their investment strategy with their financial objectives.


4) Flexibility and Freedom of Choice:


Direct funds with zero commission offer investors the unbiased investment option and flexibility to choose from a wide range of investment options, empowering you to build a diversified portfolio tailored to their specific needs.


Enjoy the freedom to invest in different asset classes, sectors, or regions without worrying about incurring excessive commission charges.


5) Long-Term Impact on Wealth Accumulation:


Over time, the savings accumulated from investing in direct funds with zero commission can significantly impact your wealth accumulation journey.


By eliminating commission fees of 1.5%, your Mutual Fund portfolio could grow by a whopping 34% in 20 years.


Switch to direct plans within minutes here.




Commission fees play a pivotal role in investment decisions, as they directly impact your returns. Embracing the opportunities presented by direct funds with zero commission can empower you to take full control of your investments and optimize your wealth accumulation journey. By considering the advantages of zero commission investing, you can make informed choices that align with your financial objectives and enhance your long-term investment success. Start exploring direct funds with zero commission today and unlock the potential for greater investment returns.


Interested in how we think about the markets?

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