Direct plan
Market basicsA mutual fund version with no distributor commission built into the expense ratio.
In plain terms
Same fund, same manager, same portfolio — typically 0.5–1% cheaper every single year.
Every term is defined twice: once the way a filing would put it, and once the way somebody would explain it to you across a table. The second one is usually the one that sticks.
Showing 2 terms
A mutual fund version with no distributor commission built into the expense ratio.
Same fund, same manager, same portfolio — typically 0.5–1% cheaper every single year.
The version of a mutual fund scheme whose expense ratio includes a commission paid to the distributor who sold it.
Same scheme, same manager, same portfolio as the direct plan, typically 0.5–1% dearer every year. The extra is charged whether or not any advice is ever given.