What is direct and growth in mutual fund?
There are two kinds of mutual fund plans – direct plan and regular plan. “Direct growth” means investing in growth option of a scheme through a direct plan, while “Growth” means investing in growth option of a scheme through a regular plan.
Which is better direct growth or regular growth?
Higher Net Asset Value (NAV) of direct plans The NAV of direct plans is higher than their regular counterpart because of their higher returns. As the operating expenses of the fund is reduced from its net AUM, the lower expense ratio of its direct plan results in higher NAVs.
What is the role of AMC?
What is an Asset Management Company? Asset management companies (AMCs) are firms pooling funds from various individual and institutional investors and investing in various securities. The company invests the funds in capital assets such as stocks, real estate, bonds, and so on.
How do I buy mutual funds directly from AMC?
You can invest in direct funds by visiting the branch office of the AMC. You must complete KYC by submitting the self-attested identity and address proof. Consider filling the standard application form or SIP form depending on the investment mode after selecting the right mutual fund scheme.
What is the difference between direct and regular plans of mutual funds?
Direct and regular plans of a mutual fund scheme differ from each other only on the cost structure. Everything else from the fund manager, to the portfolio, is the same. Before we get into more details, you need to be aware of the cost involved in mutual fund investments and how they impact your returns —
What are mutmutual funds?
Mutual Funds are available in two plans – Regular and Direct. While regular mutual fund plans are commonly-known to investors, direct mutual fund plans have started becoming popular recently.
Why are the returns of direct mutual funds higher than others?
The returns of any direct mutual fund are always higher than the regular version of the same mutual fund. One of the key factors which influence a mutual fund investment decision is the return. The return of a mutual fund is usually calculated on 1 year, 3 years, and 5 years basis to represent the traditional investment horizon.
What are the similarities between direct plan and regular plan?
Both plans share similarities in terms of investment style, investment objectives, fund management, asset allocation strategy, portfolio composition and benchmark indices. Like regular plans, investors of direct plans can also choose among lumpsum, SIP and STP mode of investing and between dividend, dividend reinvestment and growth options.