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Difference between direct and regular mutual funds | |||||||||||||||
Pune, Maharashtra, India
Did you know that there are two types of plans in mutual funds in India - direct plan and regular plan. Let’s take a look at the difference between these two types of plans in mutual funds.
What are mutual funds?
Before we dive into the differences, let’s quickly understand what are mutual funds. Mutual funds are like a big pool of money collected from many investors. This money is then used to buy a mix of different things, like stocks and bonds. When these investments make money, the investors also make money.
There are two types of plans in mutual funds in India: Direct funds/ plans and Regular funds/ plans.
When selecting an online platform for purchasing mutual funds, it's important to consider factors such as user-friendliness, comprehensive information availability, and minimal fees. An example of such a platform is the Bajaj Finserv mutual fund investment platform. With its user-friendly interface and zero commission charges, this platform enables you to effortlessly invest in mutual funds and efficiently manage your investment portfolio.
Difference between direct and regular mutual funds
Let’s understand a few important terms:
How to Invest in direct and regular mutual funds?
Investing in both types of mutual funds is easy. For direct mutual funds, you can directly visit the AMC’s website to make your investments or invest through online platforms like “Bajaj Finserv app" which offers direct mutual funds in association with its group entity Bajaj Finserv Direct Limited
For regular mutual funds, you usually need to go through a broker or agent like the Bajaj Finserv Platform. They will help you with the process.
Conclusion
To sum it up, the main thing to remember is that direct mutual funds have lower charges because there’s no middleman involved. This can make a difference in the long run and help you keep more of the money you make from your investments. Regular mutual funds involve intermediaries like agents or brokers, which can lead to slightly higher charges. When choosing between direct and regular mutual funds, consider your goals, your comfort with managing your investments, and the fees involved. |
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