Why do regular plans dominate some types of mutual funds and not others?
2 weeks, 5 days ago

Why do regular plans dominate some types of mutual funds and not others?

Live Mint  

Investors in direct mutual funds lean toward certain equity-fund categories, while regular-plan investors favour others. Mint analysed India’s top 15 fund houses in terms of assets under management to see which of their equity funds had higher share of regular plans and which had higher share of direct plans. Data shows that it is not just thematic and sector funds where the share of regular funds is on the higher side, but also broad-based fund categories such as multicap funds and multi-asset allocation funds, as these categories have According to data from the Association of Mutual Funds in India, six of the top ten mutual fund distributors in AUM terms are banks and their subsidiaries. According to Vishal Dhawan, founder of Plan Ahead Wealth Advisors, the higher share of direct plans in passive funds may also be due to the preference of fund houses. “Certain private banking channels and wealth platforms offer advisory services under the RIA code and only offer direct plans as advisory fees are charged separately," said another senior executive of a fund house.

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History of this topic

Direct vs Regular Mutual Funds: Why opting for a direct plan can help you save more
2 months, 2 weeks ago

Direct vs Regular Mutual Funds: Why opting for a direct plan can help you save more

Live Mint  

If you want to invest in a mutual fund scheme, there are primarily two options. In a direct plan, investors can invest directly in a mutual fund by creating an account on the AMC website. Direct vs Regular mutual funds The key difference between the two forms of investing is that regular mutual fund investors stand to earn a higher …

Mutual funds: Why passive funds can be a great choice for retail investors to invest in 2025?
Trending News
2 months, 2 weeks ago

Mutual funds: Why passive funds can be a great choice for retail investors to invest in 2025?

Live Mint  

If you are planning to invest in mutual funds this year, one of the dilemmas you may face is choosing between active and passive mutual funds. With the entry barrier for launching index mutual funds kept lower for passive schemes under this framework, retail investors are expected to find these schemes far more lucrative and tempting. They have brought in …

Mutual Funds: Direct vs regular MF. Seven things that investors should know
1 year, 9 months ago

Mutual Funds: Direct vs regular MF. Seven things that investors should know

Live Mint  

Direct and regular plans are two options available to mutual fund investors, and understanding their differences is crucial before making an investment decision. Direct plans involve direct investment in a mutual fund scheme without the involvement of intermediaries, while regular plans are accessed through distributors or agents. Difference between direct and regular plan MF investors must know before investing Expense …

Mutual Funds garner over Rs 1 lakh cr in FY20 with big bets on SIPs; retail investors add more AUMs, folios
4 years, 11 months ago

Mutual Funds garner over Rs 1 lakh cr in FY20 with big bets on SIPs; retail investors add more AUMs, folios

Firstpost  

Systematic investment plan or SIP has been the preferred route for retail investors to invest in mutual funds as it helps them reduce market timing risk. New Delhi: Investors are preferring SIP option for investing in mutual funds, as the industry garnered over Rs 1 lakh crore through this route in 2019-20, up 8 percent from the preceding fiscal, even …

Direct investment in mutual funds is not as cheap as you think
6 years, 4 months ago

Direct investment in mutual funds is not as cheap as you think

Live Mint  

Mumbai: Asset management companies raised fees for those who invested in direct mutual fund plans as they sought to offset revenue losses for having had to reduce charges in regular mutual fund plans that were sold through distributors, circumventing the spirit of rules introduced by the markets regulator to reduce the cost of investing. In a 22 October circular, it …

Difference between direct and regular mutual fund plans
6 years, 6 months ago

Difference between direct and regular mutual fund plans

Live Mint  

Two weeks ago, Sebi chairman Ajay Tyagi said at an annual mutual fund conference that the mutual funds industry isn’t doing enough to spread awareness about direct plans. Effective 1 January 2013, all asset management companies launched direct mutual fund plans for all open-ended schemes. Or you can go to Mutual Funds Utility, the mutual fund industry’s platform to invest …

Is a direct mutual fund plan for you?
6 years, 8 months ago

Is a direct mutual fund plan for you?

Live Mint  

In a direct mutual fund plan, you can invest your money in mutual funds through a fund house, without the involvement of a distributor, broker or an agent. For instance, SBI Bluechip Fund regular plan has an expense ratio of 1.97%, whereas its direct mutual fund plan has a much lower expense ratio of 1.15%, according to Value Research. The …

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