anuragmukherjee28
Moderator
Direct VS Regular Mutual Fund in tabular format
Here is a comparison between returns form the direct and regular mutual funds for SBI Bluechip funds. For simplicity, we have taken an initial investment of Rs. 10,00,000 in this illustration.
Thus in this case Direct has given a better return , than regular mutual fund
Parameter | Direct Plan | Regular Plan |
Third-Party | Not Present | Present |
Expense Ratio | Low expense ratio (no additional fees to broker/agent) | High expense ratio (includes a commission to distributor/agent) |
NAV | High due to low expense ratio. | Low due to high expense ratio. |
Returns | Marginally higher returns due to a low expense ratio. | Marginally lower returns due to a high expense ratio. |
Market Research | Done by Self | Done by advisor |
Investment Advice | Not Available | Provided by advisor |
Investment | Investors directly invest in a plan of a fund house | Investment is made through third-party intermediaries |
Here is a comparison between returns form the direct and regular mutual funds for SBI Bluechip funds. For simplicity, we have taken an initial investment of Rs. 10,00,000 in this illustration.
CALCULATIONS | DIRECT | REGULAR | DIFFERENCE |
---|---|---|---|
Initial investment amount | Rs. 10,00,000 | Rs. 10,00,000 | |
Investment tenure | 5 years | 5 years | |
Average 5-year return | 20.34 % | 19.24 % | 1.1% |
Final return amount | Rs. 25,23,771 | Rs. 24,10,515 | Rs. 1,13,256 |
Thus in this case Direct has given a better return , than regular mutual fund