Securing Hannav Ledger...
Securing Hannav Ledger...
Glossary
Direct plan is a mutual fund plan bought directly from the AMC without distributor commission, featuring lower expense ratio than regular plans.
Direct plans cut out the middleman distributor — you save on fees, which compounds into lakhs over decades.
Same portfolio as regular plan but trail commission excluded from expense ratio. Difference often 0.5–1% annually. Suitable for DIY investors using AMC websites, MF Central, or fee-only advisors. Returns diverge over time purely from cost savings.
₹10,000 monthly SIP for 20 years at 12% gross return: 1% lower expense in direct plan can add ₹8–12 lakh extra corpus versus regular plan.
Yes via switch transaction within same AMC. May trigger capital gains tax on deemed redemption from regular plan units.
No. Investment portfolio is identical; only expense ratio and plan code differ.
Fee-only SEBI RIAs assist without earning trail commission. Robo-advisors and research platforms also support direct investing.