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Direct plans in mutual funds were introduced in January 1, 2013 and has been around for over nine years but awareness about them among investors is abysmally low in India.
A recent study titled ‘Rediscover the Indian Investor’ conducted by Cafemutual reveals that majority of investors do not know or understand about direct plans in mutual funds.
While 13% of the total respondent says that they do not know about direct plans, 49% respondents believe that regular plan is cheaper than direct plans.
Nearly 38% people say that they are aware of direct plans and understand that they are cheaper than regular plans.
The survey covered 2458 respondents – 1852 male and 606 female. Of the total respondents, 993 were millennials. All these participants have been surveyed through physical interviews and the sample size includes investors who have invested their money in at least one financial product.
The survey further found that many investors prefer investing their money through financial intermediaries like mutual fund distributors or insurance agents, as they feel safe and comfortable with them. They believe that investment decisions should be left to discretion of experts like mutual fund distributors. We will cover these findings in details in another article.
