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Regular vs Direct Mutual Funds: What is the difference?

The article from CNBC TV18 discusses the differences between regular and direct mutual funds, particularly in the context of Budget 2025. Regular mutual funds are sold through intermediaries like brokers or distributors, who charge a commission, leading to higher expense ratios. In contrast, direct mutual funds are purchased directly from the asset management company (AMC), eliminating the intermediary and thus reducing the expense ratio. This lower cost can result in higher net returns for investors over time. The article highlights that while direct plans offer cost benefits, they require investors to do their own research and manage their investments without guidance. It also touches on potential changes in taxation or regulations that could affect mutual funds in the upcoming budget, suggesting that investors should stay informed about these developments to make educated investment decisions.

Read the Full cnbctv18 Article at:
[ https://www.cnbctv18.com/personal-finance/regular-vs-direct-mutual-funds-what-is-the-difference-budget-2025-19541210.htm ]