Economic TimesLean R·
Explained: Why Sebi wants mutual fund investors to switch to direct plans
Sebi has directed mutual fund houses to make direct plans the default option on their digital platforms from 1st November. A look at the reason behind the regulator’s action.WHAT ARE DIRECT AND REGULAR PLANS IN MUTUAL FUNDS?Direct and regular plans are two ways of investing in a mutual fund scheme. In a direct plan, investors put money in a scheme without involving a distributor, broker or agent. Since no commission is paid, the scheme’s expense ratio or fee is lower.A regular plan is bought th…
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