How do direct plans of mutual funds differ from regular plans of mutual funds and how has been their growth?
Answer
Answer
Direct plans are a variant of the mutual fund plan where the investor invests directly and hence does not have to pay the sales and trail commission. This is translated into lower total expense ratio on direct plan and reduces his cost and enhances returns on the fund. Check the table below for the flows data.
Resource Mobilised by Mutual Funds under Direct and Regular Plans