[random42]

> they take 0.5-1.5% commission on that investment every year as long as 10000 remains invested and to whatever that amount grows to. So you are paying compounding commissions. Most Indians aren't aware of this.

This is a massive claim. Any source?

[nikhilmantha]

https://scripbox.com/pages/disclosures

http://economictimes.indiatimes.com/mf/analysis/direct-plans...

[random42]

First link does not mention anything about scripbox taking commissions from the consumers.

Second link does not mention scripbox at all!

[nikhilmantha]

Basically there are two plans in Mutual Funds. Direct and Regular. Both have the same securities, manager, structure etc. Only difference is that Fund houses pay commissions to agents on sale of regular plans, while there are no commission s on Direct plans. These commissions are counted as expenses towards the funds. The more the expenses the less the return. And these expenses are compounding hence the loss of return is also compounding. Scripbox provides only regular plans where they take commissions(Commission rates mentioned in the link). So while nothing is going from investor's pocket, the investor is taking a sizeable hit in their returns!

How do you differentiate between the two plans? Look for the word 'Direct' in direct plans of mutual funds.