Essayer OR - Gratuit

Switch To Direct Funds

Dalal Street Investment Journal

|

May 24, 2021

One of the reasons you invest is to get better returns and the mutual fund category is among some of the options to do so. Here too, switching from a regular to direct plan can lead to better gains. The article explains how

Switch To Direct Funds

There are very few factors that impact the future returns of a mutual fund scheme the way the expense ratio does. Lower the better. Therefore, if everything remains the same, a lower expense ratio means better future returns for a mutual fund scheme. The best way to have a lower expense ratio is to go for the direct plan of a mutual fund scheme. In 2012, the Securities and Exchange Board of India (SEBI) asked asset management companies (AMCs) to introduce direct plans for all schemes. And from January 2013, every mutual fund has had two options: regular plan and direct plan. The same category, same scheme, same fund manager, same portfolio – the difference being the expense ratio charged to investors.

Direct plan has a lower expense ratio. These direct plans were created to connect investors directly to the mutual fund houses without any interference from intermediaries like brokers, distributors, advisors, and others. So, direct plans are those plans where investors can purchase units of MF schemes directly from the AMCs. They have a lower expense ratio as the investors buy directly from the AMCs and hence do not have to pay any trial fees or commission to any broker or agent.

Therefore, the direct plan of a mutual fund scheme having a separate NAV is higher than a regular plan’s NAV.

PLUS D'HISTOIRES DE Dalal Street Investment Journal

Dalal Street Investment Journal

Dalal Street Investment Journal

Capital Markets 2.0: From a Banyan Tree to Billion-Dollar Trades

From open street gatherings to today's tech-driven markets handling crores in daily turnover, India's capital markets have truly come a long way. But the transformation isn't over yet. In this story, Mandar Wagh explores the next wave of evolution reshaping India's financial landscape, highlighting SEBI's progressive reforms, the rise of a strong digital backbone, and the key companies positioned to benefit from this structural shift

time to read

6 mins

July 28 - August 10, 2025

Dalal Street Investment Journal

Dalal Street Investment Journal

India Inc's Q1 FY26: A Tale of Resilience and Reckoning

Q1FY26 has revealed a corporate India that's adapting smartly to shifting global currents while drawing strength from domestic policy support. With RBI's timely rate cuts cushioning demand, sectors like banking and insurance have surged ahead, even as IT and consumer segments navigate headwinds. Early results from 200+ companies suggest a story of selective strength and strategic resilience. The rest of the earnings season could either cement this momentum—or test it

time to read

5 mins

July 28 - August 10, 2025

Dalal Street Investment Journal

RIDING WATER INFRA BOOM WITH VALUE-ADDED GROWTH

Jai Balaji Industries Ltd

time to read

2 mins

July 28 - August 10, 2025

Dalal Street Investment Journal

Dalal Street Investment Journal

Active Momentum Funds Timing the Market or Tapping the Trend?

Abhishek Wani evaluates whether India's active momentum funds are skillfully timing markets or simply riding trends. By dissecting strategies of Samco and Quant, he scrutinizes the fine line between tactical rotation and disciplined trend-following in a volatile momentum investing landscape

time to read

10 mins

July 28 - August 10, 2025

Dalal Street Investment Journal

FIEM INDUSTRIES LTD LEADING THE CHARGE IN AUTOMOTIVE LED LIGHTING

India has become the fastestgrowing major economy in the world in recent years, which has led to significant demand for automobiles, including auto components.

time to read

2 mins

July 28 - August 10, 2025

Dalal Street Investment Journal

Dalal Street Investment Journal

The Case for Value-Oriented Mutual Funds

We Indians love a good bargain. Known for our haggling skills, we take pride in not overpaying - whether it's for a product or a service. After all, why pay more than what something is truly worth?

time to read

2 mins

July 28 - August 10, 2025

Dalal Street Investment Journal

Dalal Street Investment Journal

EMI vs SIP : Finding the Financial Sweet Spot

With rising home loan interest rates and evolving tax rules, many individuals face a critical choice- should surplus funds go toward prepaying their loan or building long-term wealth through SIPs? This piece compares both strategies across scenarios, helping you make an informed decision based on savings, returns, risk, and time horizon

time to read

9 mins

July 28 - August 10, 2025

Dalal Street Investment Journal

Dalal Street Investment Journal

Make Your Portfolio Inflation-proof

Inflation is crucial to investing as it reduces the value of your money over time. Therefore, keeping up with the rate of inflation, to protect the value of investments, should be the top priority for every long-term investor. Remember, the ability to earn a positive real rate of return, i.e., gross returns minus taxes minus inflation, would depend upon the composition of the portfolio.

time to read

2 mins

July 28 - August 10, 2025

Dalal Street Investment Journal

Dalal Street Investment Journal

AI Tailwind in IT Stocks: Time to Reboot Your Tech Portfolio?

After one year of sectoral underperformance, Indian IT is quietly undergoing its most radical overhaul since the cloud revolution, this time led by AI. The shift isn't cosmetic; it's existential. GenAI is reshaping services, rewarding agile midcaps and prompting investors to rethink legacy bets. The future of tech belongs to the AI-ready.

time to read

11 mins

July 28 - August 10, 2025

Dalal Street Investment Journal

Gen Z: High Conviction Story, but Priced to Perfection?

From skincare routines to fashion trends, Gen Z is transforming how India consumes. This digital-first generation doesn't just buy; they curate experiences, demand personalization, and look for authenticity in every swipe and scroll. As India's 440-million-strong Gen Z cohort begins to dominate discretionary spending, platforms built to speak their language stand to gain immensely. Nykaa, India's leading content-led, lifestyle retail platform, is at the forefront of this generational shift

time to read

8 mins

July 28 - August 10, 2025

Translate

Share

-
+

Change font size