By:- Mehul Koradia, Chief Strategy Officer, Mirae Asset Sharekhan
SEBI's new mutual fund rule regarding direct plan as a default option while investing is a positive move. Choosing a distributor should always be an explicit choice rather than an implied consent. This rule will bring more clarity to investors at the investment stage itself. A distributor add s value to an investor not just with choosing the fund in line with the risk profile but also helps with technical and operational aspects of the fund. While AMCs can very well manage these queries, they're limited to queries relating to their AMC funds only. A distributor is able to help with the overall mutual fund portfolio across AMCs. Investors should be aware of the services provided by a distributor and should be agreeable to the costs arising from these services.
