Mutual fund generally offer two types of plan in india
- Direct Plan
- Regular Plan one by one i will discuss what is the actual meaning of these two things which mentioned above. Direct Plan of mutual fund Our stock market regulator SEBI ( security exchange and board of india) has introduced direct plan of mutual fund in JANUARY 2013 , and made mandatory every company shall be liable to issue direct plan as well as regular plan. Direct plan is more flexible than regular plan because of its can be purchase directly from company.
- as declare by its name regular plan, its also offer same plan same scheme at same price but through third party, third party includes broker, mutual fund house, . it offers same mutual fund in behalf of mutual fund companies.
- if you choose regular plan return may be differ as compare to direct plan .
- regular plan may be bit expensive because of the commission of third party included .
- here if you purchase from third party, they always get in touch with you and keep providing and assisting you during choosing a best fund for you.
- they guide in terms of ones future plan as per their investing period like short term or long terms its .
- period does matter when we choose any funds for our future goals.
- For example i am explaining how invested amount may differ
Particulars/Schemes SBI blue chip DSP blck rock ICICI equity
Mr. X (Regular plan) Rs. 4,00,335 Rs. 3,63,967 Rs. 4,05,544
Mr. Y (Direct plan) Rs. 4,10,115 Rs. 3,64,837 Rs. 4,14,396
Difference Rs. 9,780 Rs. 870 Rs. 8,852
- as you seeing difference between regular plan or direct paln, so its now depend upon you which plan would be fruitful for you for future prospective .
- if you purchase sip or lumsum your broker firm send you an email in which they mentioned their firm or brokering house name rather than mutual firm company name . just see this below picture
* every months when your due date arises your broker send just same email including all details like
- Date of SIP , folio no, purchase transaction no, name of mutul fund and name of broker
Redemption of both Direct and Regular plan ?
* method of redemption of both plan direct as well as regular very simple and convenience.
* it may take up to 3 to 4 busness days since you lodge request of redemption . *all amount of redemption will be credited to your bank account which you had mentioned during KYC ( know your customer) ,
just am sharing you a picture for your better understanding .
CONCLUSION : AS PER MY OPINION DIRECT PLAN IS FAR BETTER THAN REGULAR PLAN , WHERE WE HAD NOT TO PAY ANY EXTRA HIDDEN COMMISSION AND ALSO INVESTOR ARE ELIGIBLE TO GOT HIGH RETURN ON THEIR INVESTMENT . SO I SUGGEST TO GO FOR DIRECT PLAN.
Thnxx for reading( Happy investing)www.tradehunger1956.online