Direct Fund Vs Regular Fund

Ratin Biswass / 17 Apr 2025/ Categories: DSIJ_Magazine_Web, DSIJMagazine_App, Letters to Editor, MF - Letter to Editor, Mutual Fund

I am thinking of investing in mutual funds but do not have much

I'm thinking of investing in mutual funds but don't have much knowledge about them. I'm confused about the difference between direct funds and regular funds. Could you guide me on this? - Diksha Sharma[EasyDNNnews:PaidContentStart]

Editor Responds : Thank you for taking the time to write to us! Direct funds and regular funds are two types of mutual fund options. The key difference lies in the expense structure. In direct funds, you invest directly with the fund house without involving any intermediary, meaning they come with lower expense ratios, which can lead to higher returns over time.

On the other hand, regular funds involve an intermediary like a distributor or advisor, which results in higher expense ratios due to commission fees paid to them. While direct funds are more cost-effective, they require you to manage your investments yourself. If you're new to investing, regular funds might offer the advantage of professional guidance but at a higher cost.

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