How Direct Mode is more beneficial while buying ELSS mutual funds?

POSTED BY vish1789 ON April 2, 2015 6:26 pm COMMENTS (3)

Dear Madam/Sir

I want yo invest in ELSS scheme upto Rs 150000 on behalf of many of my family members in Axis Long Term Equity Fund . Right now in regular fund is NAV 31.284 and in Direct fund NAV is 32.169.

If I am right, for 150000 rs I will get 4795 Units in Regular fund and 4662 units in Direct fund. If so, can you please tell me how Direct mode is more beneficial?

CA. Vishnu Khandelwal

3 replies on this article “How Direct Mode is more beneficial while buying ELSS mutual funds?”

  1. Dear Vishnu

    Even if you get less units in direct MF plan initially due to higher NAV as compared to regular plan the gap between the direct plan NAV and regular plan NAV will widen as the years progress. Since there are no benefits to distributors from direct plan the NAV is bound to increase faster as compared to regular plan NAV for any mutual fund. Only thing is you will have to take initial efforts of paperwork if you are planning to go direct. SIP is recommended in MF as the amount of investment is high.

  2. Parag Lathia says:


    In the direct plan, the Mutual Fund company doesnt pay anything to the distributor so you get more units.

    Since you are well qualified (CA) to decide which plan to buy, you should go direct

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