Direct or Regular Mutual Fund plan?
In Direct plans, Mutual Fund house doesn’t pay any commission to the distributors whereas in regular plans, distributors receive 0.5% to 1.5% commission every year. This commission is deducted from NAV of the mutual fund which results in reduced returns. Direct mutual plans earn around 1% higher returns compared to the regular plan. One can buy the direct mutual fund by opening a CAN account from MF Utility website or opening a account with Paytm Money, ET Money, PhonePe, Mobikwik or COIN (Zerodha).