Maybe a slightly alternate perspective. The reason for going direct is four fold. Just my limited view
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Focus on dividend growth investing. I.e. passive income which can meet expenses. Investing for cash flow has a different mindset and connotation to it than chasing multibaggers and paper gains. Not saying one is better than the other, just different. Dividend growth is different from high yield investing. This is not possible in mutual funds.
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Why sell an asset for income needs. Dividend investing theoretically reduces the need to sell assets. Mutual fund investing or capital gains strategy focuses on redemption. There is a tax tradeoff, however the new tax regime is friendlier
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Mutual funds come with a cost. Typically 0.5-1% of portfolio value. Most of them invest in well known companies. Why pay a fund manager every year to invest in well known high quality stocks. Why not own them directly
4.the 4% rule which many so called experts use to advise people like us has many limitations. It’s a good thumbrule however may not work for everyone. Also redemption in a market downturn can be severe on the portfolio. If one has passive income then part of the redemption need can be offset
Hope this helped in some small way
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