What are the advantages/disadvantages of direct plans over regular plans of mutual funds?
- Alexander D Almeida
Direct plans help you to save money on commissions and marketing-related expenses. This small saving is invested in the scheme and it may help you to make extra returns over a long period. This is the biggest advantage of investing in a direct plan. The disadvantage of taking the direct route is that you have to make all your investment decisions and complete the formalities on your own. Since you are buying a direct plan directly from a mutual fund company, you don't have access to a mutual fund advisor. This means you cannot turn to a mutual fund advisor for help -- be it completing the formalities or running around or in buy/sell decisions. This is the reason why investors should opt for direct plans only if they have enough knowledge about mutual funds and investments.