If your invested fund does not have the words \u201cDirect Plan\u201d then you are investing in a Regular plan. There is a major difference between direct plans vs regular plans \u2014 the expense ratio. Typically, a direct plan has an expense ratio of around 1%, while regular plans cost 2.5% per year. Just 1.5%.<\/p>\n\n\n\n
It\u2019s a small difference between direct plans vs regular plans \u2014 but one that could decide whether you holiday in New Delhi or New York or retire at 45 or 70. Over time, the difference in the expense ratio would add up significantly, thanks to the power of compounding. For example, a SIP of just Rs. 5,000 a month in a direct plan, over 25 years, would yield an additional Rs. 28 lakh over a regular plan.<\/p>\n\n\n\n
Over the long term, regular plans eat into 40% of your wealth. The simple decision to \u2018let the agent fill the form\u2019 could end up costing you tens of lakhs of rupees!<\/p>\n\n\n\n
Read more at: https:\/\/www.jama.co.in\/direct-plans-vs-regular-plans\/<\/a><\/p>\n\n\n\n\n Maxiom Wealth \u2014 Free Tool<\/p>\n Two funds with similar star ratings can deliver very different outcomes. Use our fund comparison tool to check if you’re in the right scheme for your risk profile and investment horizon.<\/p>\n Compare Funds \u2192<\/a>\n Talk to a Financial Advisor<\/a>\n<\/div>\n\n","protected":false},"excerpt":{"rendered":" If your invested fund does not have the words \u201cDirect Plan\u201d then you are investing in a Regular plan. There is a major difference between direct plans vs regular plans \u2014 the expense ratio. Typically, a direct plan has an expense ratio of around 1%, while regular plans cost 2.5% per year. Just 1.5%. It\u2019s… Read More »Regular plan Vs Direct plan, Which is better?<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[38,59],"tags":[],"class_list":["post-1163","post","type-post","status-publish","format-standard","hentry","category-mutual-funds","category-regular-or-direct"],"_links":{"self":[{"href":"https:\/\/maxiomwealth.com\/askguru\/wp-json\/wp\/v2\/posts\/1163","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/maxiomwealth.com\/askguru\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/maxiomwealth.com\/askguru\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/maxiomwealth.com\/askguru\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/maxiomwealth.com\/askguru\/wp-json\/wp\/v2\/comments?post=1163"}],"version-history":[{"count":1,"href":"https:\/\/maxiomwealth.com\/askguru\/wp-json\/wp\/v2\/posts\/1163\/revisions"}],"predecessor-version":[{"id":3642,"href":"https:\/\/maxiomwealth.com\/askguru\/wp-json\/wp\/v2\/posts\/1163\/revisions\/3642"}],"wp:attachment":[{"href":"https:\/\/maxiomwealth.com\/askguru\/wp-json\/wp\/v2\/media?parent=1163"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/maxiomwealth.com\/askguru\/wp-json\/wp\/v2\/categories?post=1163"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/maxiomwealth.com\/askguru\/wp-json\/wp\/v2\/tags?post=1163"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}Is Your Mutual Fund Working Hard Enough?<\/h3>\n