Maximize tax savings
up to ₹46,800 easily
0% commission • Earn upto 1.5% extra returns
ClearTax’s mission is to simplify finances for Indians. With this intent, we have already simplified the tax-filing process for individuals. You can file your ITR in just 7 minutes with ClearTax. On similar lines, we have embarked on making investments simpler for Indians by launching ClearTax Invest. You can invest in ready-to-invest mutual fund plans and secure your future. We have covered the following in this article:
You don’t have to pay a rupee in commission to invest in mutual funds as we offer only direct mutual funds. As you might already know, every mutual fund comes in two forms; direct and regular. Direct funds come with zero commission attached. The third party, such as the online platform or financial advisor, will not get anything out of your investment. On the other hand, investing in a regular fund through a third party comes at a commission payable.
The investors don’t pay commission directly to the third party. The fund house pays them from the expense ratio levied on your investment, which is deducted through your returns. Even though this is a small sum, it will amount to a massive one when the investment horizon is longer.
Direct funds are known to provide up to 1.5% higher returns than regular funds as their expense ratio is lower than regular funds. The expense ratio is the cost of investment you pay to the fund house or asset management company. The fund house deducts the expense ratio from the return on your investment. If you invest in a regular fund, your expense ratio will be higher as the fund house will collect the third party’s commission as a part of your expense ratio. Ultimately, this reduces your returns.
On the other hand, there is no commission payable when you invest in a direct fund. Hence, the expense ratio will be on the lower side, translating into higher take-home returns than regular funds. Direct funds may provide up to 1.5% higher returns than regular funds.
The difference in returns between regular and direct funds may seem nominal. But in the long run, the difference will be significant due to the power of compounding. Therefore, it is advisable to invest in the direct plan of a mutual fund scheme.
Our in-house experts have curated mutual fund plans to help individuals achieve various goals. Your requirements may be saving on taxes, retirement planning, planning for your children’s higher education, or building an emergency fund. We have ready-to-invest plans to achieve all financial goals.
You have to assess your requirements and risk tolerance to invest in a suitable plan. All the expert-curated plans consist of top-performing funds from their respective categories that have consistently outperformed their peers and benchmark index. By investing in these plans, you will achieve your goals in a hassle-free and seamless manner.