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Published: 17 May 2025
Updated: 17 May 2025
Thinking about investing in mutual funds and want to get the best returns? You’ve probably heard about direct mutual funds. But the real question is: where to buy direct mutual funds in India, and how do you get started?
Let’s break it down in simple terms, with examples, tips, and everything you need to know to make a confident choice.
Direct mutual funds are mutual fund schemes you buy directly from the fund house or through approved digital platforms, without involving a broker or distributor. This means there’s zero commission and a lower expense ratio, so more of your money stays invested and grows over time. In fact, switching from regular to direct plans can boost your returns by 0.5% to 1.5% per year over the long term since the commission cost is eliminated.
|
Feature |
Direct Mutual Fund |
Regular Mutual Fund |
|
Where to buy |
AMC website, RTA, and direct mutual fund apps |
Banks, brokers, agents, and fintech platforms |
|
Commission/Expense ratio |
Lower (no commission) |
Higher (commission paid to distributor) |
|
Returns |
Higher (savings passed to investor) |
Lower (commission reduces returns) |
|
Advice |
DIY (do your own research) |
Guidance from broker/agent |
Bottom line: Direct mutual funds are ideal for investors who want to save on fees and are comfortable choosing their own funds.
You have several convenient options for direct mutual fund investment online:
|
App Name |
Key Features |
|
Groww |
0% commission, 24×7 support, no annual charges or hidden fees |
|
Zerodha Coin |
Zero commission, SIP automation, 1.3+ crore users |
|
Kuvera |
5000+ direct plans, goal-based investing, zero commission |
|
ET Money |
Paperless, expert tips, tax-saving tools, pay using UPI |
|
Paytm Money |
Clean interface, great for beginners, SIP automation using UPI Autopay |
|
INDmoney |
1600+ direct plans, real-time alerts, free demat account, 1.6+ crore users |
Physical branch visits are always a hassle. You can buy direct Mutual Funds online from the convenience of your home or office. The process is simple and effortless, just follow the steps given below:
Submit PAN, Aadhaar, photo, and address proof online.
You can do this through an app, AMC, or RTA.
2. Choose Your Platform:
Pick a platform and create a valid id by filling in your customer details.
Decide between AMC, app, or RTA based on your comfort and needs.
3. Select the Fund and Plan:
Pick your mutual fund scheme and select “Direct Plan” (Growth or Dividend).
4. Decide on SIP or Lump Sum:
SIP for regular investing, lump sum for one-time investment.
5. Complete Payment:
Use UPI, net banking, or NEFT for quick and secure payments.
6. Track and Manage:
Use your platform’s dashboard to monitor investments, set up alerts, and redeem units when needed.
When you invest in zero commission mutual funds (direct mutual funds), you’re cutting out the middleman — brokers and distributors who typically earn a commission from your investments. This commission, though invisible to you, is built into the expense ratio of regular mutual funds and can eat into your returns over time.
Let’s put it in perspective. Suppose you invest ₹5 lakh in a regular mutual fund with a 1.5% expense ratio, while the direct plan of the same fund charges only 1%. That 0.5% difference may seem small, but over 10 years, it could mean tens of thousands of rupees more in your pocket, thanks to compounding. The longer you stay invested, the bigger the gap grows. For long-term investors, this difference can be the key to achieving bigger financial goals like funding your child’s education or retiring early.
With zero commission mutual funds, you keep more of your returns, making your money work harder for you without paying extra for services you may not need.
Read also : Top 10 Best Mutual Funds in India 2025
Investing in direct mutual funds online brings a host of advantages that make the whole process smoother and more rewarding:
Direct mutual fund investment online gives you more control, convenience, and value, making it easier than ever to grow your wealth on your own terms.
At My Mudra, we help you compare, choose, and invest in direct mutual funds online with zero commission, instant KYC, and expert guidance. Whether you’re a beginner or a seasoned investor, get access to top funds, easy tracking, and higher returns — all in one place.
Start your direct mutual fund investment journey with My Mudra and make your money work harder for you.
Direct mutual funds are schemes you buy directly from the AMC or approved platforms, with no broker or agent involved.
Complete KYC, choose a platform (AMC, app, RTA), select your scheme and “Direct Plan,” and invest via SIP or lump sum.
Yes, direct mutual funds are designed for investors who want to invest without a broker or agent.
Yes, because there’s no commission, the expense ratio is lower, so your returns are higher over the long term.
Direct funds have no distributor commission and lower expenses, while regular funds have higher expenses due to broker fees.
Yes. Most platforms and AMCs allow you to switch your investments from regular to direct plans. Note that tax implications and exit loads may apply.
You can do e-KYC using your PAN, Aadhaar, and a live photo/video on most platforms.
