Why you should never invest in regular mutual funds?
Why you should never invest in regular mutual funds?
A mutual fund is not free from costs. An asset management company (AMC) is a for-profit entity whose aim is to make some profit from their venture. They also have to pay their analysts, operations teams, pay brokerage fees for market participation, and record keeping fees to registrars like CAMS and KFintech, formerly known as Karvy.
A regular plan of a mutual fund has one more additional expense — distributor commission.
Direct plans of mutual funds have no commission, so it has lower fees compared to its Regular plan counterpart. So the Returns will be higher with no extra risk.