Скачать или смотреть Direct Plan Vs Regular Plan In Mutual Fund | Direct Plan And Regular Plan Difference | Which is best

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Direct Plan Vs Regular Plan In Mutual Fund | Direct Plan And Regular Plan Difference | Which is better

mutual fund me direct or regular plan me kis plan me long term ne kaya effect hoti hai yeh video me vistar se baat ki hai

Direct mutual funds and regular mutual funds are two different types of investment plans offered by mutual fund companies. Here are the key differences between them:

▎1. Distribution Channel:

• Direct Mutual Funds: These are purchased directly from the mutual fund house without any intermediaries. Investors can invest through the fund's website or app.
• Regular Mutual Funds: These are purchased through intermediaries such as brokers, financial advisors, or distributors. The intermediary helps investors in selecting the right funds based on their financial goals.

▎2. Expense Ratio:

• Direct Mutual Funds: Generally have a lower expense ratio because they do not include distribution costs or commissions paid to intermediaries.
• Regular Mutual Funds: Typically have a higher expense ratio due to the commissions and fees paid to the intermediaries for their services.

▎3. Returns:

• Direct Mutual Funds: Since they have lower expense ratios, they often provide better returns over time compared to regular plans, assuming all other factors are constant.
• Regular Mutual Funds: The higher expense ratio can eat into the returns over time, making them slightly less favorable in terms of net returns compared to direct plans.

▎4. Advice and Support:

• Direct Mutual Funds: Investors need to do their own research and make investment decisions without professional guidance unless they seek it elsewhere.
• Regular Mutual Funds: Investors receive advice and support from intermediaries, which can help them choose suitable funds based on their risk profile and financial goals.

▎5. Investment Process:

• Direct Mutual Funds: Investors usually have to fill out forms and complete KYC (Know Your Customer) requirements directly with the fund house.
• Regular Mutual Funds: The process may involve additional paperwork through the intermediary, but the intermediary often assists in completing these steps.

▎Conclusion:

Choosing between direct and regular mutual funds depends on an investor's knowledge, experience, and willingness to pay for advisory services. If an investor is confident in making investment decisions independently, direct mutual funds may be more cost-effective. Conversely, if an investor prefers guidance and support, regular mutual funds may be a better option despite the higher costs.