How are Direct plans in Mutual Funds different from Normal Plans ?

POSTED BY praveen_zagade ON November 20, 2013 12:26 pm ONE COMMENT


I had invested in HDFC Top 200 Mutual Funds SIP from 2011 through HDFC AMC. Until Dec 2012 all the amount was being invested in ”HDFC Top 200” but from Jan 2013 the money was diverted to ”HDFC Top 200 – Direct” Fund. Now the problem is that the units bought earlier of Top 200 are showing 9-15% returns where as the one of Direct Fund are showing 2-5% returns.

I was assuming that both the funds would be investing in the same shares and hence the returns would be same. Seems I\’m wrong somewhere.

Could you please explain me the difference between the Direct plans and regular plans and how would it affect the returns in long term (10-15 yrs) and short term (3-5 yrs)?



One reply on this article “How are Direct plans in Mutual Funds different from Normal Plans ?”

  1. ashalanshu says:

    Dear Praveen, you have earned more in units purchased since jan 2013. You are missing the point that NAV of HT200 was lower from Aug 2011 and hence this 9-15% return is the outcome of that low purchase point. Do not go by my words. Please check by yourself for the NAVs of direct and regular plan of HT200 and you ‘ll come to know what I mean.



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