What is Direct plan and regular plan

Question

Accepted Answer

Direct plan and regular plan are two types of mutual fund investment plans.

Direct plan is bought directly from the mutual fund company without any intermediary involvement.
Regular plan is bought through a distributor or broker who charges a commission for their services.
Direct plan has lower expense ratio compared to regular plan.
Regular plan is suitable for investors who need guidance and advice from a financial advisor.
Direct plan is suitable for investors who have knowledge and experience in mutual fund investments.
SEBI introduced direct plans in 2013 to provide investors with a cost-effective investment option.
Examples of mutual fund companies offering direct and regular plans are HDFC, ICICI, and SBI.

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