What are Direct Mutual Funds in India

Mutual fund investors have definitely turned smarter. An increasing number are taking the direct investments route to spice up their returns. Indeed, going by a Crisil report, direct plans now constitute 25% of the assets under management (AUM) of mutual funds. If you invest in mutual funds and plan to do so, you better understand what is a Direct Plan for every mutual fund scheme.

Know more about Mutual Funds and their hidden costs

What are Mutual Funds

An investment vehicle that is made up of a pool of funds collected from many investors for the purpose of investing in securities such as stocks, bonds, money market instruments and similar assets. Mutual funds are operated by money managers (mostly on a chargeable basis), who invest the fund's capital and attempt to produce capital gains and income for the fund's investors. A mutual fund's portfolio is structured and maintained to match the investment objectives stated in its prospectus.

Are they part of your Portfolio

If you are new to your journey towards financial freedom, you may be having some inhibitions