Money making is an art as well as a science. Most people ignore this important aspect of life due to paucity of time, lack of knowledge, or simply being lazy in doing research.  

Mutual Funds are among the most popular investment avenues available to you to retire rich. Read More . There are multiple ways of investing in mutual funds and one of the popular ways of doing so is through your broking firm’s website/app or through a local financial agent, who might be your friend. 

But did you know that your broker earns a commission of up to 1.5% per annum every time you do an SIP. These mutual funds are called as Regular Mutual Funds. The amount of commission the agent/broking firm earns differs from fund to fund. So, it is quite possible that you might be advised to invest in those funds which give them a higher commission.

So, now the question is how you can cut this expense and increase your risk-free annual return. 

The answer is simple; by investing in what are called Direct Mutual Funds. Direct Mutual Funds are those funds in which you invest directly without a middleman. Nothing more, nothing less, you will have same funds in your portfolio and earn an extra risk-free return of up to 1.5% per annum and can avoid any mis-selling from the agent. Read More 

Let’s look at the table to understand the extra return from direct funds.