Difference between Direct and Regular Mutual Fund Plans
In simple laymen's term, Direct Plan is those schemes which do not entertains any distributors in between the investor & the Mutual Fund house. On the other hand, the regular plan is those which are garnered by a mutual fund distributor or an agent who gets some commission for selling the fund to investors. Such commission falls at the end of the Fund house and this increases the fund's expense ratio. Looking at the overall context, there won't be any significant changes in both the plans as in most cases the fund manager remains the same. When it all started? Effective from 1st Jan 2013, all Mutual Fund Houses opened Direct Mutual Funds Schemes as under the guidelines of SEBI. This was done to generate more revenue and allow investors to invest on their own. This marked the separation of direct and regular plans along with their NAVs. So what is the hype about? Most people think that if they invest in Direct Plans they will be able to save some...