Direct Mutual Fund

A Direct Mutual Fund is a type of mutual fund plan where investors buy units directly from the Asset Management Company (AMC) without involving intermediaries like brokers or distributors.

Meaning:

• In Direct Plans, no commission or distribution fee is paid to agents, which reduces the overall expense ratio of the fund.
• Since costs are lower, investors usually get slightly higher returns compared to Regular Plans of the same scheme.
• Investors can purchase these funds directly through the AMC’s website, official apps, or platforms like MF Utility.

Example:

If you invest in an Equity Mutual Fund – Direct Plan, your money goes directly to the AMC without distributor commissions, so the NAV (Net Asset Value) grows a bit faster than the Regular Plan of the same fund.