“Are direct plans all that beneficial?” was a twitter headline I read this morning and I was stumped.
To me:
Is the question really about benefit of direct plans or the way advisor is compensated? @PrashantmET https://t.co/hY7t1e02bz
— Vipin Khandelwal (@vipinkh) May 10, 2016
This summarises all that is wrong about the understanding about the direct plans of mutual funds.
The popular media and some advisors too has also not been able to hold its horses and has given out interpretations and views that show the direct plans in not so good light. So much so that it has been declared that new investors should not invest in direct plans.
Now, the investor is left utterly confused. In this post, I will try and bring out the facts and help you, the investor, to make the right decisions about direct plans.