Transfer latter of education department.

Many years ago, in January 2013, SEBI has come out with several reforms including introduction of direct schemes in mutual funds.  While investors have started investing through direct schemes, investors still have many doubts and questions about direct plans of mutual fund schemes.  What are the direct plans in mutual funds?  Who should invest through these direct plans of mutual fund schemes?  Regular and direct plans are just two options to buy the same mutual fund scheme, run by the same fund manager who invests in the same stocks or bonds.  The only difference between the two is that in the case of a regular plan, your AMC or mutual fund houses pay a commission to your broker in the form of distribution expenses or transaction fees beyond your investment, whereas in the case of a direct plan  There is no such commission paid.
No disbursement fee or trail fees will be paid to mutual fund brokers for such mutual fund schemes.  Due to this, the expense ratio will be lower as compared to regular schemes.  And investors will get higher returns than regular plans.  Returns can range from 0.5% to 1.5% per annum and this depends on the AMC expense ratio.

 There will be no transaction fee for lump sum investment or SIP investment in mutual fund schemes made through these direct plans as the transaction is done directly with AMC.  There are some mutual fund middlemen who do not charge transaction fees as they depend on trail fees.

 There will be a separate NAV for direct plans.  The scheme will denote "direct" in its statement at the end of such direct plans.

 Instead, in the case of direct plans, commission is added to your investment balance, which reduces the expense ratio of your mutual fund scheme and increases your returns over the long term.

 Investors can invest in mutual fund schemes with direct plans without involving distributors or mutual fund brokers.  They are required to visit the AMC website and follow the process of investing in mutual fund schemes.  But in 2018-19 again there are big changes like products like Paytm, ET Mani and Zerodha Coin, you can also invest in direct plan and since KYC is already sung for the use of these "apps".  No further processing is necessary

No disbursement fee or trail fees will be paid to mutual fund brokers for such mutual fund schemes.  Due to this, the expense ratio will be lower as compared to regular schemes.  And investors will get higher returns than regular plans.  Returns can range from 0.5% to 1.5% per annum and this depends on the AMC expense ratio.

  There will be no transaction fee for lump sum investment or SIP investment in mutual fund schemes made through these direct plans as the transaction is done directly with AMC.  There are some mutual fund middlemen who do not charge transaction fees as they depend on trail fees.

  There will be a separate NAV for direct plans.  The scheme will denote "direct" in its statement at the end of such direct plans.