Understanding Mutual Funds: Regular vs. Direct Plans 13 Aug, 2024
Anil Singhvi, Managing Editor Zee Business, explores the intricacies of Mutual Fund Regular and Direct plans on Zee Business Show – Mutual Fund ki Master Class. A striking statistic reveals that 95% of SIPs under Direct plans are redeemed within three years, and 98% within five years. This highlights a critical issue: without the guidance of an advisor, investors often struggle to maintain their investments for the long term, leading to missed opportunities for significant wealth creation.
While Regular plans come with a higher expense ratio, the benefits of working with a qualified advisor are substantial. Investing in expert guidance can prove invaluable, especially for those who are not yet seasoned investors. It’s essential to recognize that the fees paid to a good distributor or advisor in a Regular plan are a worthwhile investment.
As you navigate your investment journey, consider the long-term implications and the potential for growth when deciding between Regular and Direct plans. Invest wisely and prioritize your financial future!
