The Coffee Conversation That Started It All
It was a crisp winter morning in Gurugram. I was sitting at my favourite corner table in a coffee shop when a client, Ankur, walked in with that familiar look — half curious, half sceptical.
“Taresh ji,” he began, “I’ve been reading about direct mutual funds. They have lower expense ratios. Why shouldn’t I just invest directly and save the fees I pay you?”
I smiled. This wasn’t the first time I had heard it, and it won’t be the last. In fact, I welcome this question. Because answering it is not about defending myself — it’s about helping someone make a decision they can live with for the next 10, 20, or even 30 years.
That day over cappuccinos, Ankur and I spoke for 45 minutes. By the end, he understood why, for him, regular plans were not a cost but an investment in better decision-making, discipline, and peace of mind.
Lesson from Rajesh: When Savings Became Losses
Years ago, Rajesh, a tech-savvy professional, decided to move all his investments from regular to direct plans.
Year 1: He proudly announced that he had “saved” ₹22,000 in commissions.
Year 2: His portfolio was drifting towards mid- and small-cap funds because they had done well recently.
Year 3: A market correction hit. His portfolio fell 26%, while my regular-plan clients with balanced allocations were down only about 13–14%.
The cost he saved in fees was tiny compared to the returns he lost due to misallocation and lack of timely rebalancing.
Direct plans were not the villain here. The absence of structured advice was.
The 11 Reasons I Recommend Regular Plans
Over the years, I’ve boiled down my reasoning into 11 clear benefits of working with an advisor under regular plans. These are drawn from my client experiences, market lessons, and decades in financial planning.
1. Expert Scheme Selection
In India, we have over 2,000 mutual fund schemes across 30+ categories. Most investors pick funds by reading a list online, hearing from friends, or following what’s trending.
I remember Neha, a corporate executive, who brought me a list of “Top 10 Funds” from a popular finance website. Out of those, four had already peaked and were likely to underperform going forward. One was entirely unsuitable for her risk profile.
As her advisor, I was able to filter, match, and customise her portfolio based on her specific goals, timelines, and risk appetite.
Action Step for Investors: Never select a fund just because it’s on a top list. Understand its category, risk, and how it fits into your larger plan.
2. Portfolio Monitoring & Rebalancing
Markets are like the weather — they change constantly. A portfolio that is perfect today might be overexposed to risk six months later.
Suresh, one of my long-term clients, saw his equity allocation swell from 60% to 78% after a rally. Left unchecked, this would have made him vulnerable to the next downturn. We rebalanced by shifting some gains into debt funds, preserving profits without hurting growth.
Action Step: Review your portfolio at least twice a year. Rebalancing is not about chasing returns — it’s about keeping your risk in check.
3. Goal-Based Alignment
Your portfolio should be a servant to your goals, not a master that dictates your behaviour.
A young couple I advised wanted to buy a home in five years. They were investing entirely in equity funds. We shifted a portion into safer instruments so that their down payment wouldn’t be at the mercy of market crashes.
Action Step: Always match your investment time horizon with the right asset class.
4. Risk Profiling & Suitability
A 25-year-old with no dependents can afford higher risk than a 55-year-old nearing retirement.
I once met a retired gentleman holding small-cap funds simply because his nephew recommended them. We gradually shifted him to balanced and debt-oriented funds, reducing his sleepless nights.
Action Step: Get a professional risk assessment done at least every three years.
5. Tax-Efficient Strategies
One of the most overlooked parts of investing is post-tax returns.
For example, redeeming equity funds before one year invites short-term capital gains tax. Debt funds have their own tax rules. Strategic timing of redemptions and switches can save thousands.
Action Step: Always check tax implications before redeeming or switching funds.
6. Behavioural Coaching in Highs & Lows
The two most dangerous moments in investing are euphoria and panic.
During the March 2020 COVID crash, many investors wanted to redeem everything. I convinced several clients to stay invested or even add more. A year later, they were up by over 40%.
Action Step: In times of fear or greed, pause and consult before acting.
7. End-to-End Service
From opening folios to emergency redemptions, from record-keeping to SIP tracking — these are things clients rarely want to manage themselves.
Ritu, a busy entrepreneur, once needed ₹5 lakh urgently for a medical emergency. Because I was managing her account, the funds hit her bank the same day.
Action Step: Consider the value of service, not just the cost of advice.
8. Saving Time & Avoiding Overload
Today, information is abundant, but wisdom is scarce. Too much data can paralyse decisions.
One client told me he spent 20 hours researching a single mutual fund — and still wasn’t sure. I gave him my recommendation in 20 minutes, backed by years of research and data access.
Action Step: Decide how much your time is worth.
9. Accountability & Discipline
SIPs work best when maintained for years. But life happens — SIPs get paused, skipped, or forgotten.
By monitoring regularly, I ensure clients’ contributions don’t stop unnecessarily and that they stay on track for compounding magic.
Action Step: Have someone hold you accountable to your own financial plan.
10. Access to Insights & Networks
As a CFP®, I attend fund manager meets, AMFI sessions, and industry briefings. This gives me early insights into market trends and fund strategy changes — things most retail investors never hear about until much later.
Action Step: Leverage professional networks to stay ahead of the curve.
11. Partnership for the Long Term
Investing is a marathon, not a sprint. Life will throw career changes, health issues, and market crashes your way.
Having an advisor who knows your journey ensures that your plan adapts with you.
When I Recommend Direct Plans
I’m not against direct plans. In fact, I sometimes recommend them — but only if you have:
1. Time for research and monitoring
2. Expertise in fund analysis
3. Emotional discipline to ride out volatility
4. A review process every 6–12 months
Myth Busting
• Myth: “Direct is always better”
Truth: Costs matter, but so do mistakes.
• Myth: “Advisors only push for commission”
Truth: Good advisors focus on outcomes, not payouts.
• Myth: “I can Google my way to wealth”
Truth: Information is not insight.
Final Word
The choice between direct and regular isn’t about “cheap” vs “expensive.” It’s about value vs risk of costly mistakes.
If you want a clear, personalised recommendation, I invite you to book a free portfolio review. We’ll look at your goals, your temperament, and your time commitment — and together decide which path is best.
📌 Book your free portfolio review here: https://tinyurl.com/Video-tb
The author of this article, Taresh Bhatia, is a Certified Financial Planner® and advocate for female empowerment. For more information and personalized financial guidance, please contact taresh@tareshbhatia.com
He has authored an Amazon best seller-“The Richness Principles”. He is the Coach and founder of The Richness Academy, an online coaching courses forum. This article serves educational purposes only and does not constitute financial advice. Consultation with a qualified financial professional is recommended before making any investment decisions. An educational purpose article only and not any advice whatsoever.
©️2025: All Rights Reserved. Taresh Bhatia. Certified Financial Planner®
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