Earn upto 1.5% more returns with Direct Plans, find out how!

Do you search for online restaurants that offer home delivery at zero charges? Even Direct Plans of Mutual Funds charge 0% commissions.

Every mutual fund has 2 variants: Direct and Regular Plans:

• In Regular Plans, mutual fund intermediaries charge 0.5-1.5% as commissions or distribution fee.
• On the other hand, Direct Plans eliminates the brokers/intermediaries and thus charge zero commissions. Instead, this is reflected back in your portfolio in the form of 0.5-1.5% additional returns.

Let’s have a look at the returns from a one-time lump sum investment of Rs. 2 lakhs in Direct and Regular plans for 20 years:

Assuming a Regular plan of a specific mutual fund with ~15% returns, we will get upto 9.6 lakhs extra returns in the Direct Plans of the same fund (thanks to additional 0.5-1.5% returns combined with compounding effects in the long-term).

Start your investment journey with “Build Wealth”:

“Build Wealth” feature on Fisdom is powered by proprietary Smart Recommendation Engine (backed by robust research methodology, scientific-financial models & historical market data). This engine recommends funds specifically for your personal financial goals and risk appetite while ensuring that the recommended funds have an excellent track record (for past 3-5 years as well as in both bull & bear markets).

Check out the funds recommended by Smart Recommendation Engine: