Difference between Regular Plan and Direct Plan
| Basis of Difference | Regular Plan | Direct Plan | |
|---|---|---|---|
| Objective | To provide an option of investment with advisory services by an expert distributor to the investor | Vs | Investors who have enough expertise and who are capable of handling their own investments without an advisor |
| Meaning | To invest in mutual fund through an intermediary like MF advisor or distributor | Vs | To invest in mutual fund without an intermediary like MF advisor or distributor |
| Suitable for | Investors who do not have the expertise to select good funds as per their financial goals | Vs | Investors who know which funds to buy to achieve their financial goals |
| Expense Ratio | Higher | Vs | Lower |
| Returns | Lower | Vs | Higher |
| Net Asset Value (NAV) | Lower | Vs | Higher |
| Availibility | Since inception of the scheme | Vs | Since January 2013 |
| Selection of funds | MF advisor or distributor suggests the fund according to the financial goals of the investor | Vs | Dependent upon mutual fund websites, past performance or blogs / articles to know about good mutual fund schemes |
| Benefit | Advisory services from MF advisor | Vs | No advisory service from MF advisor |
| Documentation and paperwork | MF distributor takes care of the paperwork and the documentation process | Vs | Investor needs to take care of the paperwork and the documentation process on his own |