Mutual funds are investments that are diversified and hence have possibilities of high returns with minimized risks. It is often the case that investors buy mutual funds through a distributor or a broker. But it is possible to buy these mutual funds without the need to go through agents. Brokers usually charge a small fee from the investors. Investing through the direct plan will save money. Direct plan is the option provided by the fund houses for investors to invest the money directly with them for the purpose of buying shares of mutual funds. Most of the fund companies provide both options for investors, regular plan and direct plan. Regular plan is the investment option which goes through certified distributors and agents. Direct plan schemes are introduced by the various fund houses for all open ended fund schemes with the exception being exchange traded mutual funds.
Mutual funds are beneficial investments and intelligent investing can help in saving even more money. When investing in a mutual fund the regular way, a commission of around 0.5 – 0.7 percentages has to be paid. In addition, the broker might charge an additional fee. These additional costs might instead be channeled into buying more shares of the mutual fund when buying mutual fund without broker. The question of how to buy mutual funds without a broker has a very simple answer. The investor has to open an account directly in the website of the company announcing the mutual fund. The process of opening an account directly is similar to opening a brokerage account. A form can be downloaded from the official website and can be submitted after providing all necessary details including bank account details and address. Sometimes it might be necessary to visit the office once to activate the transaction account or to get the PIN which will be required for any transaction done from the account.