Direct Plan or Regular Plan which one is better for investor in MF

Direct Plan or Regular Plan which one is better for investor 

  Mutual fund generally offer two types of plan  in india 

  1. Direct Plan
  2. 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.     

         Benefits of Direct Plan     Direct plan or Regular Plan

                                                                                                                                                                    * Its can be purchase directly from companies website like “SBI BLUE CHIP, DSP BLACK  ROCK . without the involvement of an agent, broker or distributor  
  average return compare to direct plan bit  higher than regular plan , because of  it is purchase directly from their site without involvement of third party like broker, or intermediary . in this plan their is no any hidden charge included and you are not require to pay further any commission except SIP OR LUMSUM amount which scheme you already opted , if you want to know about sip and lumsum visite this link  https://www.tradehunger1956.online/2019/06/is-mutual-fund-really-right.html ,  if any one interested to buy mutual fund direct plan simply visit concern site and buy mutual fund units as per their future plan, after submitting all relevant details you will be provided FOLIO NO            something like that(251555522522) , where you can track your existing mutual fund record.        but one more thing i would like to share to all my readers in present time direct  Direct Plan of Mutual funds which currently contribute less than 12% of total investments as per current data ( figure may be differ )  

 Regular Plan and its benefits   
  • 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 

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