What is regular and direct mutual funds?

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Regular Vs Direct Mutual Fund

Regular mutual funds are offered through a distributor or agent. Here customers have to pay a commission.

Direct mutual funds are funds that are offered directly by the mutual fund house. There is no involvement of an intermediary like a distributor and agent here. Customers don't have to pay brokerage or commission on it.

Direct Mutual Funds

Regular Mutual Funds

No involvement of distributor or agents.

Involvement of distributors & agents.

No commission & brokerage charges.

Commission is charged in the range of 0.05% to 1%.

Offer higher returns.

Offer lower returns.

The buying process is short & fast as you buy directly from the fund house.

The buying process is as long as it involves intermediaries.

You need to do your own research to select funds.

Distributors or agents offer you assistance in choosing funds as per your goals and risk profile.

The investment objective, portfolio allocation and risks etc., remain the same of both the funds.


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