1. Advisorkhoj
  2. Post Your Queries
  3. Mutual Fund
  4. What is the difference between investing in direct plan and regular plans of mutual funds

What is the difference between investing in direct plan and regular plans of mutual funds

What is the difference between DIRECT and REGULAR funds apart from commission. I see expense ratio for direct funds is less. Which one would you suggest for fairly knowledgeable investors for long term. Are there any other benefits regular funds offer comparative to direct funds. Thanks for spreading knowledge on investments?

Dec 21, 2016 by Venkat, Bangalore  |   Mutual Fund

Thanks for acknowledging our good work – truly appreciate.

Yes, for fairly knowledgeable investors who has time and understating of the markets and products, mutual fund direct plans are a better option as the cost is low.

However, if you wish to avail the advise and services of a mutual fund advisor, then of course, you will have to go with the regular plans. Here, the takeaway is, that you benefit from the expertise of the financial advisor and also get his services as and when required.

However, there is a third option as well, that is, you can pay a fee to an advisor, maybe a RIA (SEBI registered Investment Advisor), take his or her advise and make the investment in direct plan. Also, if you take the help of the RIA he should provide you a login ID and password, so that you can monitor your mutual fund investments online. The registrar of mutual funds do provide your investment transaction details to the RIA through whom you have invested in the direct plans.

While, we hope the above answers your query, we do recommend reading the articles below in the above context –

https://www.advisorkhoj.com/articles/Personal-Finance...

https://www.advisorkhoj.com/articles/Personal-Finance...

Thanks for writing to Advisorkhoj.

comments powered by Disqus
Search
You haven't found the answer for your queries? Do post your queries to us.
POST A QUERY

© 2016 Advisorkhoj - A Gamechanger Business Services (I) Pvt. Ltd. Brand - All Rights Reserved

Feedback