Difference Between Direct Mutual Fund And Regular Mutual Fund

Direct mutual fund plan is buy you direct from AMC (Assets Management Company- Mutual Fund House), and regular mutual fund plan is buy from an advisor/distributor/broker

If you buy a mutual fund plan direct from fund house call direct mutual fund plan and if you are buy a mutual fund plan from a advisor/ distributor/broker then called regular plan.

Direct MF Plan

Direct plan gives you higher return then regular plan, this plan is direct buy to a fund hose so broker/agent/distributor commission is no added on expense ratio yearly.

Regular MF Plan

Regular mutual fund plan is give you low return compare to direct plan, regular plan add agent/broker/distributor commission on your expense ratio yearly.

You can watch this video for details

NAV (Net Asset Value)

If you look a any mutual fund plan of any AMC you look major different between NAV, Direct mutual fund plan NAV is higher then regular mutual fund plan.

Expense Ratio

Big different between direct plan and regular plan is expense ratio, expense ration is a year charge, year charged by the AMC (Mutual fund house), if you are get a direct plan your expense ratio is low but, but if you’re get a regular plan then expense ratio is high.

Regular plans charge all costs including selling costs, distributor/advisor/broker commission, In case of direct plan all cost are less so directs plan is lower expense.

Expense Ratio Example

Direct MF Plan is Charge 1.5%

Regular MF Plan is Charge 2.5 %

If you are looking a mutual fund plan click below link and signup for the a new account and complete the all registration process, after complete the registration process then review your all details if all information is correct then your account is ready for mutual fund investment.

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