Be prepared to pay for advice while doing financial planning. Here's why

While a do-it-yourself approach in direct plans will help you save money, there is the risk of making poor investment decisions and suffering loss of capital

The Securities and Exchange Board of India (Sebi) had introduced direct plans of mutual funds five years ago. However, the rate of adoption of these plans has gathered pace only in the past two-three years. The introduction of direct plans has made it even more crucial for investors to select the right financial advisor, who can help them build a sound mutual fund portfolio.  

When Sebi had introduced direct plans, its vision was to offer a lower-cost option to knowledgeable and sophisticated investors, both institutional and non-institutional. Investors who use direct plans do not have to pay the distribution fee that