âWhat are direct MF plans?
Mutual fund houses had introduced direct plans of schemes seven years ago as per a Sebi directive. While choosing the direct plan of a scheme, the investor must know that he needs to carry out the scheme selection on his own, at his own risk or by employing the services of a Sebi-registered, I.e. a fee-based investment adviser.
âWhere to invest
âSwitch to direct plan
âAlso keep in mind
- NAV of a direct plan is higher than that of a regular plan because no commission is involved. For the same reason, the expense ratio of direct plans is lower too.
- While these two are separate plans, the portfolio of the scheme remains the same.