A unit manager or a fund manager, of any mutual fund (not just HDFC) makes several decisions:
- Which stocks or bonds to invest in?
- When to redeem them based on their performance.
- What balance to maintain between stocks and bonds based on the objective of the fund.
- What to do when there are major shifts in the market – a major rally or a big correction.
The fund manager is the same whether you invest in the Regular Plan of a fund, or in the Direct Plan. The underlying stocks and bonds are also the same.
So it makes sense to invest only in Direct Plans as the broker and commission is removed. You get upto 1.5% more per year and in the long run your portfolio can be larger by upto 40%.
Switch to direct if you are invested. it is really easy. Click here to start your switch.
