If you invest in mutual funds, then I am sure that you are already aware of the difference between Direct and the Regular plans. The NAVs of both are different.
Direct plans were launched by all asset management companies (AMCs) in 2013 (after the Securities and Exchange Board of India (SEBI) mandated it) for all their mutual fund schemes. The idea was that if an investor is able to invest on his own, then he/she should be able to do it ‘direct’ly and independently, without going through distributors/MF agents and avoid paying commissions unnecessarily. And since no commissions are paid in direct plans as they are offered to investors directly by the AMCs, these have lower expenses and higher NAVs.
