Direct Mutual Funds are mutual fund schemes that investors can buy directly from the Asset Management Company (AMC) without involving intermediaries like brokers or distributors.
Key Features of Direct Mutual Funds:
- Lower Expense Ratio: Since there are no distributor commissions, the expense ratio is lower compared to regular mutual funds.
- Higher Returns: Due to lower costs, direct plans usually offer slightly higher returns than their regular counterparts.
- Direct Investment with AMC: Investors need to transact directly with the AMC or through online platforms that facilitate direct investments.
Who Should Invest in Direct Mutual Funds?
- Investors who can research and manage their portfolios independently.
- Those looking to maximize their returns by saving on commission costs.
- Investors who do not require advisory services from brokers or agents.
While direct mutual funds offer cost benefits, they require investors to have a good understanding of fund selection and portfolio management.
Direct Mutual Funds are mutual fund schemes that investors can buy directly from the Asset Management Company (AMC) without involving intermediaries like brokers or distributors.
Key Features of Direct Mutual Funds:
- Lower Expense Ratio: Since there are no distributor commissions, the expense ratio is lower compared to regular mutual funds.
- Higher Returns: Due to lower costs, direct plans usually offer slightly higher returns than their regular counterparts.
- Direct Investment with AMC: Investors need to transact directly with the AMC or through online platforms that facilitate direct investments.
Who Should Invest in Direct Mutual Funds?
- Investors who can research and manage their portfolios independently.
- Those looking to maximize their returns by saving on commission costs.
- Investors who do not require advisory services from brokers or agents.
While direct mutual funds offer cost benefits, they require investors to have a good understanding of fund selection and portfolio management.
