|Author: Mahesh 20 Jun 2016 Member Level: Gold Points : 3 (Rs 3) Voting Score: 0|
Here are the answer of the questions.
1. Direct Plan: In this plan you are registering directly from website or official mutual fund office of the fund house. And this way there are no trail commissions leaked from your investment. And that way you are saving money on this plan.
2. Regular plan : In this plan you are going through the broker and the middle man companies such as fundsindia. These plans have around 0.5 to 0.9 % of the commission per investment cycle. And this way you ar leaking the money through investment.
If you know how to register directly then the direct plan is more beneficial. If you are not aware of investment into mutual fund. And if you are not sure of how to invest and manage SIP then the regular plan can be good.
You have to keep your PAN card and few other documentations ready. Namely you need cancelled cheque and the mutual fund registration filled out. Also PAN card to put your details on that form. Usually photocopy helps with the regular funds.
In order to register for the direct plan, you can use the online registration option of fund house. Go the fund house's official website. Register for an account. And from there you can buy SIP or the lumpsum plan. This way you can easily register for the direct plan. Be sure to follow up on SIP registration and other documentation formality.
|Author: Partha Kansabanik 20 Jun 2016 Member Level: Diamond Points : 2 (Rs 2) Voting Score: 0|
When an investor invests in a mutual fund's direct plan, he/she deals with the AMC directly, while in a regular plan the investor invests through a distributor or advisor. AMCs usually pay upfront fees to agents for their services. Now, investors can avoid paying these commissions if they invests in direct plan and it translates into marginally more return every year. The difference in returns is expected to range between 0.50 and 0.75 per cent.
This reform has been carried out by SEBI in September, 2012. The direct plans have come into effect since 1st January, 2013.