Mutual Funds – Direct Plans are the only ones to invest in

1. For those who came in late (Jan 1, 2013) saw a silent but giant revolution in the mutual fund industry. All fund houses for all funds had to offer a Direct Plan for those who came to buy and sell directly to Fund House which had a lower expense ratio than the non-direct a.k.a (regular) plan. It works out to about 0.7% per annum for equity funds and a bit lower for debt funds. The difference is available on the website. Yes, it is the exact same fund with same fund manager but with different costs. So if Direct gives a return of 12% per annum, Regular will give about 11.3% return due to higher expenses mainly which are paid to the brokers and distributors

2. If your mutual funds statement does not show the words “Direct…