Direct mutual fund plan
Direct mutual fund plan What are the direct plans in mutual funds and what are the benefits from them. Nowadays investors have started investing through direct plans of mutual funds but investors still have many doubts and questions about the direct plans of these schemes. Whether to invest in mutual fund schemes through them? What are direct plans? Although Asset Management Companies (AMC) had allowed direct investment in mutual fund schemes before 2011, there was no separate scheme for these investments. These investments were made in the distributor scheme itself and were tracked with the NAV out of the distributor scheme. Hence the investor was bound to buy the mutual fund on the basis of the NAV of the distributor schemes. With the introduction of the Direct Plan from January 1, 2013, things changed. Direct Plan in Mutual Fund Direct plans or direct plans are those where AMC / mutual fund houses do not charge distributor expenses / trail cha