Direct mutual funds have a higher Net Asset Value (NAV) than conventional funds because of their lowered expense ratios. While direct funds eliminate distributor commissions, therefore reducing expenses, regular funds have higher fees to offset distributor commissions. With their lower cost, direct funds have a greater NAV as NAV is calculated after expenses are deducted. This is why over time direct fund investors keep more of their returns. Simply explained, lower fees translate into improved value for investors and a greater NAV!
Direct mutual funds have a higher Net Asset Value (NAV) than conventional funds because of their lowered expense ratios. While direct funds eliminate distributor commissions, therefore reducing expenses, regular funds have higher fees to offset distributor commissions. With their lower cost, direct funds have a greater NAV as NAV is calculated after expenses are deducted. This is why over time direct fund investors keep more of their returns. Simply explained, lower fees translate into improved value for investors and a greater NAV!
