Direct plans have been around for slightly over 3 years now. The initial impact was seen on investments made by large investors and companies that preferred this lower-cost option since in many cases the choice of funds did not require external advice. What about individual investors? The debate is still on about whether the direct plan fits the individual retail investor’s need suitably.
If you are an existing mutual fund investor and want to shift to a direct plan, you can make the transition for both incremental and existing holdings. Once you understand how to do this, also keep in mind the most effective use of the direct option.
