Bajaj Finance Limited (“BFL”) is a Non-Banking Financial Company carrying the business of acceptance of deposits, providing lending solutions to Retail & Corporate customers, and is a Corporate agent of various insurance Companies. BFL is also registeredwith the Association of Mutual Funds in India (“AMFI”) as a distributor of third party Mutual Funds (shortly referred as ‘Mutual Funds’).
BFL does NOT:
(i)provide investment advisory services in any manner or form;
(ii)perform risk profiling of the investor;
(iii)carry customized/personalized suitability assessment;
(iv)carry independent research or analysis, including on any Mutual Fund schemes or other investments; and provide any guarantee of return on investment.
In addition to displaying the Mutual fund products of Asset Management Companies, some general information is sourced from third parties, is also displayed on ‘As-is’ basis, which should NOT be construed as any solicitation or attempt to effect transactions in securities or the rendering any investment advice. Mutual Funds are subject to market risks, including loss of principal amount and Investor should read all Scheme /Offer related documents carefully. The NAV of units issued under the Schemes of mutual funds can go up or down depending on the factors and forces affecting capital markets and may also be affected by changes in the general level of interest rates. The NAV of the units issued under the scheme may be affected, inter-alia by changes in the interest rates, trading volumes, settlement periods, transfer procedures and performance of individual securities. The NAV will inter-alia be exposed to Price / Interest Rate Risk and Credit Risk. Past performance of any scheme of the Mutual fund do not indicate the future performance of the Schemes of the Mutual Fund. BFL shall not be responsible or liable for any loss or shortfall incurred by the investors. There may be other / better alternatives to the investment avenues displayed by BFL. Hence, the final investment decision shall at all times exclusively remain with the investor alone and BFL shall not be liable or responsible for any consequences thereof.
Bajaj Finserv Direct Limited, (“BFDL”), a wholly owned subsidiary of Bajaj Finserv Limited (is a Registered with SEBI as an Investment Advisor with Registration no. INA000016083). BFDL enables resident Indian customers to directly invest in third party mutual funds through its online platform. BFDL entered into a referral arrangement with BFL, whereunder, BFL may, without risk or responsibility on its part, refer the resident Indian customers who are interested in placing their investments in Direct Mutual Funds through BFDL online platform. Investment by a person residing outside the territorial jurisdiction of India is not acceptable nor permitted.
Disclaimer on Risk-O-Meter:
Investors are advised before investing to evaluate a scheme not only on the basis of the Product labeling (including the Riskometer) but also on other quantitative and qualitative factors such as performance, portfolio, fund managers, asset manager, etc. and shall also consult their financial advisers, if they are unsure about the suitability of the scheme before investing
FAQs
One of the key distinctions between them is that regular mutual funds (MFs) have a distribution commission, while direct mutual funds do not. This makes the expense ratio higher for regular funds. The expense ratio is the fund's total expenses to its assets under management (AUM).
What is the difference between direct and regular mutual funds? ›
As the regular fund has a higher expense ratio due to the commission and brokerage involved, the NAV of the regular schemes is generally lower than the direct plans since there is no commission or brokerage in direct plans. Returns: Direct plans offer higher returns due to a lower expense ratio than regular funds.
What is the disadvantage of direct mutual funds? ›
Often, direct investors select schemes based on past performance without analysing other factors. Decision Making: The investment portfolio needs to be monitored regularly, and suitable alterations must be made depending on market conditions and investors financial objectives.
How can you tell the difference between mutual funds? ›
Mutual funds are usually actively managed, although passively-managed index funds have become more popular. ETFs are usually passively managed and track a market index or sector sub-index. ETFs can be bought and sold just like stocks, while mutual funds can only be purchased at the end of each trading day.
What is the key difference between segregated funds and traditional mutual funds? ›
Seg funds guarantee all or most of your principal investment upon maturity or death. Mutual funds generally have no guarantees at all. Seg funds are considered an asset of the insurance company and held in trust for the investor.
Is it good to switch mutual funds from regular to direct? ›
One main attraction of direct funds is that investors will not have to pay commission. In the case of regular funds, the fund house adds your advisory charges to the expense ratio. If you are a market-savvy investor with a keen interest in finance, then direct funds can be the right choice for you.
What is the difference between fund of fund and direct? ›
- Compared to a direct venture capital fund, a VC fund of funds usually indirectly owns much smaller stakes in a much longer list of companies. - This means a fund of funds is usually seen as a diversification play, offering investors exposure to a broader band of the marketplace than a direct fund.
How do you identify direct mutual funds? ›
Check the account statement of every mutual fund scheme you have invested in. You can get your account statement from the AMC or consolidated statement from the RTA (e.g. CAMs, Karvy etc). If you have invested in Direct Plan, the mutual fund scheme name will include the word – “Direct”.
What is the difference between a mutual fund and a direct stock? ›
Mutual funds diversify investments, reducing risk, but also limit potential gains. Stocks offer higher returns but come with higher risk and volatility. Explore key differences between Mutual funds and Stocks in this blog.
How do you know if a mutual fund is good or not? ›
Analyzing Mutual Fund Performance
- Analyse Fund Performance vs Benchmark Performance.
- Check the Expense Ratio of Funds.
- Study Fund History.
- Check the Strength of the Portfolio.
- Check Portfolio Turnover Ratio (PTR)
- Compare The Maturity Period of Funds.
- Compare Risk-Adjusted Returns.
3 disadvantages of segregated funds
Higher fees – Segregated funds usually have higher management expense ratios (MERs) than mutual funds. This is to cover the cost of the insurance features. Penalties for early withdrawals – You may have to pay a penalty if you cash out your investment before the maturity date.
What are the key differences between mutual funds and hedge funds? ›
Mutual funds are regulated investment products offered to the public and available for daily trading. Hedge funds are private investments that are only available to accredited investors. Hedge funds are known for using higher-risk investing strategies with the goal of achieving higher returns for their investors.
What is the key difference between mutual funds and separately managed accounts? ›
Mutual funds are a great way to safely diversify your funds while growing them, especially in retirement plans. Separate accounts offer advantages when it comes to tax considerations, customization and expenses. They offer the opportunity to create a portfolio of specific assets.
Which is better direct stocks or mutual funds? ›
Mutual funds or stocks—which one offers more security? Mutual funds typically offer more security compared to individual stocks because they spread investments across various assets, reducing the impact of market fluctuations. However, the level of security depends on the specific mutual fund or stock chosen.
How do direct mutual funds work? ›
Direct mutual funds are investment schemes offered by Asset Management Companies (AMCs) directly to investors without involving intermediaries like brokers or distributors. They typically have lower expense ratios compared to regular mutual funds, as there are no commissions or distribution fees involved.
Is direct investing good? ›
Direct investing (also known as self-directed or discount brokerage investing) can offer a wide variety of investment choices from which you can build your investment portfolio. It can give you personal control over your portfolio at lower fees than full-service brokerage/investment firms would charge.
What is the meaning of direct growth mutual fund? ›
In case of a regular plan, the mutual fund company pays commission to the intermediary. What is the difference between growth and direct growth? Growth means investing in growth option through a regular plan, while direct growth means investing in growth option scheme through a direct plan.
