Simple, with a direct plan mutual fund you pay zero commissions. With regular plan mutual funds, you pay commissions as indirect fees.
These commissions add upto 40% in the long run because most equity mutual funds incur about 1.5% annual commissions. Imagine giving away 40% of your portfolio. This is real money. And yours.
The NAVs of the two are different,but everything else remains the same. So one is like wholesale and the other is a retail price.
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Mr. Ravi S Rao, Managing Director & Member, Board of Directors
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Mr. Suman Sasmal, Ambassador, Coach, Consultant OpenExO
