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 |