There are three common ways to invest in mutual funds in India: through a mutual fund distributor, through a SEBI-registered investment adviser, or on your own through an app. Each works differently, costs differently, and suits different people.
We’re a mutual fund distributor, so we’ll be upfront about how each option works, including how we’re paid.
The three options at a glance
| Feature | Mutual fund distributor | SEBI-registered investment adviser | DIY app |
|---|---|---|---|
| Registered with | AMFI, holds an ARN | SEBI | Platform registered with SEBI or AMFI |
| What they do | Help you choose, invest in and look after mutual funds | Give personalised advice, often across your whole finances | Give you the tools; you decide |
| How they’re paid | Commission from fund houses | A fee you pay directly | Usually free for direct plans |
| Plans you invest in | Regular plans | Direct plans | Direct plans |
| You pay | No separate fee; a higher expense ratio inside the fund | The adviser’s fee, plus the lower direct-plan expense ratio | The direct-plan expense ratio |
| Ongoing help | Yes | Yes | No |
Regular plans vs direct plans
Every mutual fund scheme comes in two versions that hold exactly the same investments:
- A direct plan has a lower expense ratio, because there’s no distributor in between.
- A regular plan has a slightly higher expense ratio, because it includes the distributor’s commission.
Direct plan
- Same portfolio and fund manager
- Lower expense ratio
- You invest yourself, or through a fee-paid adviser
Regular plan
- Same portfolio and fund manager
- Expense ratio includes distributor commission
- A distributor helps you set up and manage it
The difference is real, and over 20 years it adds up. So the honest question isn’t “which is cheaper?” (direct, of course), but “is the help worth it to me?”
What you actually get from help
Fund choice is only a small part of investing well. In practice, most of the difference comes from behaviour and upkeep:
- Staying invested when markets fall, instead of stopping SIPs or selling at the bottom.
- Keeping your mix in balance as markets move, and changing it as goals get closer.
- Replacing funds that consistently fall behind their peers.
- Getting the admin right: nominations, KYC, tax statements, SWP setup, and paperwork when life changes.
- Planning withdrawals in a tax-efficient way, which matters a lot once you start drawing an income.
If you’d genuinely do all of this yourself, consistently, for decades, a DIY app is the cheapest route. Many people find they don’t, and that’s where a distributor or adviser earns their keep.
Which one suits you?
Five checks, whoever you choose
- Check the registration. Distributors have an ARN you can look up on the AMFI website. Advisers are listed on SEBI’s website.
- Your money should always be in your name. You invest directly with the fund house. Never transfer money to a person’s own bank account.
- Ask how they’re paid. Anyone helping you should explain this clearly. Distributors must disclose the commission they earn.
- You should approve every change. No one should switch or sell your investments without your say.
- Be wary of promised returns. No one can guarantee mutual fund returns. A promise is a red flag.
How Bridgit works
Bridgit Finmart Pvt Ltd is an AMFI-registered mutual fund distributor (ARN 321635). We’re not a SEBI-registered investment adviser.
- We help you invest in regular plans of mutual funds, and we’re paid commission by the fund houses. You pay no upfront fees.
- Our commission rates for each fund house are published on our commission disclosure page.
- Your investments are held in your name with the fund houses, and every change needs your approval.
- Your Bridgit expert builds your mix around your goals and looks after it with you: rebalancing, reviewing funds and setting up SIPs and SWPs.
Whichever route you choose, the most important thing is to start, and to keep going. If you’d like to see what regular investing could build, try our SIP calculator.
