A decade on, how have MF direct plans fared?
SummaryMutual fund direct plans are set to complete a decade of existence 15 days from now.
Mutual fund (MF) direct plans are set to complete a decade of existence 15 days from now. On 1 January 2013, fund houses launched these plans in accordance with a Securities and Exchange Board of India (Sebi) directive. Direct plans allow investors to invest in MFs without paying commission to distributors. Such commissions vary, based on the type of scheme but typically help investors save about 0.5-1% per year on equity MFs and 0.1-0.5% per year on debt MFs. Over time, such savings can add up to a substantial amount.