Groww co-founder and COO talks about how direct investing on online platforms work
It has been seven years since mutual funds introduced direct plans. These enable mutual fund investors to invest directly if they wish to bypass a distributor. Over the years, even Sebi-registered investment advisors have taken to direct plans as they can charge their customers, but are not allowed to earn any commissions from mutual funds.
Largely, direct plans are used by those who prefer to decide for themselves where to invest and when to invest. This breed of investors is called DIY or do-it-yourself investors.
The emergence of fintech apps and online platforms have helped such DIY investors greatly as they can now invest from the comforts of their homes, offices, from their laptops and mobile phones, at the click of a button.
But direct investing is fraught with risks. The gains made by opting for direct plans can be offset if you choose a wrong scheme.
In this podcast episode, Harsh Jain, co-founder, and COO at Groww talks to Moneycontrol’s Personal Finance Editor Kayezad E. Adajania, on why online apps and platforms have become popular with DIY investors.Tune in to the Simply Save podcast for more.