Ch.2 · Mutual Fund Structure Basics · easy
What is a Direct Plan in a mutual fund scheme?
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EXPLANATION
A Direct Plan allows investors to invest directly with the AMC without involving a distributor. Since no distributor commission is paid, the Total Expense Ratio (TER) is lower, resulting in a higher NAV compared to the Regular Plan of the same scheme. Available since January 2013 as mandated by SEBI.
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