Definition of direct purchase

purchasing shares in a no-load or low-load open-end mutual fund directly from the fund company. Investors making direct purchases deal directly with the fund company over the phone, in person at investor centers, or by mail. This contrasts with the method of purchasing shares in a load fund through a financial intermediary such as a broker or financial planner, who collects a commission for offering advice on which fund is appropriate for the client. Many companies also now allow shareholders to purchase "no-load" stock directly from the company, thereby avoiding brokers and sales commissions.