Mutual Funds may sound easy to some while others may find it complicated to understand. New investors may not understand completely how a Mutual Fund works and what kind of risks does it face. Since there are over thousands of Mutual Fund schemes available in the market today, such investors may find it difficult to choose a few funds that will suit them most.
However, there are many investors who are familiar with the market and various investment products that invest in market securities like Mutual Funds. Such investors would either have enough experience of investing in mutual funds or would have done detailed study of the topic. These investors have a fair idea about the working of Mutual Funds, their categories and subcategories, the risk-return trade-off in these funds, and their investment strategy. They can do their own research to select a handful of schemes to invest in and monitor their investments. Such investors can invest in the Direct Plans of Mutual Funds. For them, it makes perfect sense to invest in the Direct Plan because they have the confidence to manage their scheme selection and Direct Plans have lower expense charges than Regular Plans.
To invest in Direct Plans, one can visit a Mutual Fund’s office to submit an application or invest directly on its website. Investors can invest in Direct Plans through a mutual fund aggregator or mutual fund registrar’s site. Be it Regular Plan or Direct Plan, investing in Mutual Funds is very easy!