“One of the only ways to get out of a tight box is to invest your way out.”
A Mutual Fund is divided into two categories:
- Direct Plan Mutual Funds
- Regular Plan Mutual Funds
And in this topic, we will dive deeper into these two broad categories to understand how they work and who should invest in them.
Direct Plan Mutual Funds
The Securities And Exchange Board Of India (SEBI) introduced Direct Plan Mutual Funds in January 2013 making is compulsory for all the Asset Management Companies (AMCs) to provide an option to invest in Mutual Fund scheme directly. When an investor invests in a Mutual Fund directly with an Asset Management company(AMC) without the help of any broker, distributor, banker or any kind of intermediary, that is known as Direct Plan Mutual Fund. One can apply to Direct Plan Mutual Fund just by visiting the Mutual Fund house or visiting the company’s official website or through an online app such as Finity that provides the option on investing online.