If everyone goes for direct funds then how will mutual fund distributors earn?

Actually in a situation like that, They(the distributors) will not earn anything. But, why will everyone move into direct?? People move into direct because of two reasons

  1. they think its cheaper and so they will make more money and
  2. they know better.

Although I wont comment on the second point, have you thought what happens if everyone goes direct??? The selling point for going direct disappears.

Right now every expense is subverted under the advisor category and there are some differences in expenses…and thus returns. But this has a much wider ramification. It is only true if the investor continues to stay back in the product.

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