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What are the advantages of a direct plan?

Direct plans help you to save money on commissions and marketing-related expenses

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.

This article was originally published on April 15, 2016.

Disclaimer: This content is for information only and should not be considered investment advice or a recommendation.

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