When it comes to investing in mutual funds, investors have the option to choose between direct plans and regular plans. While direct plans allow investors to save on commission by purchasing directly from Asset Management Companies (AMCs), it is important to understand the implications of this decision.
Many investors are attracted to direct plans because they believe they can save money by cutting out the middleman. However, in the medium to long term, this approach may be counterintuitive. By opting for direct plans, investors miss out on the opportunities to switch and rebalance their portfolios, which can be crucial in navigating the volatility of the markets.
On the other hand, subscribing to a regular plan has its advantages. When investors choose a regular plan, they have the support of Mutual Fund Distributors (MFDs) who can help them rebalance their portfolios and ensure they are on the right track, even during market fluctuations.
It is also important to note that MFDs are not authorized to recommend or sell direct plans, as regulated by the governing bodies. This means that investors who solely rely on direct plans may miss out on valuable advice and guidance from experienced professionals. Still Not sure how and where to invest? Contact a veteran we will help you to secure your goal in the most prudent manner. Whatsapp – 9482590290