When you invest in direct mutual funds then the advisor get 0% commission. How will the advisor survive then?
You will have to pay the advisor a reasonable fee.
What is a reasonable fee?
Well, in the case of regular plans you are paying hidden fees of upto 1.5%. So a reasonable fee has to be above 0% and somewhere closer to the middle. As brokers come under pressure, expect them to resort to tactics.
I cannot comment on other pricing models, but if you are not charged any fee at all, then chances are you might be the product.
Go for a model that has a fair and transparent fee. Something that you can understand. You want the model to continue to provide direct mutual funds with strong advisory capabilities. That alone can extend the benefits of direct mutual funds with professional support while still fetching you a great deal on mutual funds!
