What are direct mutual fund plans?

Direct mutual fund plans are funds that can be directly bought from AMC. Unlike in regular mutual funds, there are no distributors or intermediaries involved in direct mutual fund plans.

'Direct Funds' and 'Regular Funds' are both parts of the same mutual fund scheme with the same portfolio, investment objective, risks and fund manager, but in direct plans, there are no commissions or brokerage. This helps direct funds deliver a higher return than regular funds.

Direct funds are offered by stock brokers like Zerodha, and 5paisa. You can invest in direct mutual fund plans online and offline. Both SIP and lumpsum investment modes are available. All your mutual fund units will be credited to your demat account.