Investor interest in direct plans offered by mutual funds, guided by better ratings from agencies, is on the rise. It is a known fact that direct plans generate better returns because of their lower expense ratio, and since rating agencies use risk-return analysis to grade schemes, direct plans, by default, get a better rating. If you scan through any of the rating agencies' websites—Morningstar or Value Research, for instance—you will find that direct plans of most schemes have a better rating ..
