How can I tell if my mutual fund is direct or regular?

In your CAS, there is a field called Advisor, and if that field is filled with “ARN” followed by a number code, then it is definitely a Regular Mutual Fund. In the same Advisor field if you find values like Direct / 0000000000 / INA100009859, then it is a Direct Mutual Fund.

Can I change my mutual fund from regular to direct?

Visit the transaction page, where you can buy, change, or redeem your fund units. Select the ‘switch’ option and then click on the respective fund name. It will have a ‘Direct Plan’ option; click on it and follow the steps displayed. It will take about four working days to reflect the change.

What is D and G in mutual fund?

Every mutual fund scheme comes in two types of plans – growth and dividend. The growth option gives returns in the form of rising values of mutual fund units. Whereas, under the dividend option returns are paid via periodic dividends.

Why direct MF NAV is higher?

The NAV of the scheme is reported after deducting these expenses. As there are no commissions involved, so the expense ratio of direct plans is lower than regular plans. Because of this reason, the direct plan of a mutual fund scheme would report a higher NAV after considering all the expenses.

Why is Direct Plan NAV higher?

Is it good to switch from regular to direct plan?

Since switching from regular funds to direct mutual funds is considered as a new investment, the switch can attract tax on capital gains. The applicable taxes can also vary depending on the type of capital gains i.e. long-term or short-term capital gains.

Why NAV for regular plan is less than direct plan?

The NAV of the scheme is reported after deducting these expenses. It means that when higher expenses are deducted, it will reduce the NAV of the scheme. As there are no commissions involved, so the expense ratio of direct plans is lower than regular plans.

Do I pay taxes on mutual funds every year?

Distributions and your taxes If you hold shares in a taxable account, you are required to pay taxes on mutual fund distributions, whether the distributions are paid out in cash or reinvested in additional shares. The funds report distributions to shareholders on IRS Form 1099-DIV after the end of each calendar year.

What is the difference between direct and regular mutual fund plans?

Net Asset Value (NAV): The TER of any mutual fund plan is adjusted from the NAV. Since TERs of regular plans are higher than those of direct plans, the NAVs of direct plans are higher than the regular plans. In other words, your investment value after you have made your purchase will always be higher in a direct plan compared to a regular plan.

What are direct funds and should you invest in them?

Direct funds are generally just a different version of the regular mutual funds. The only difference is that the traditional agent/broker is not involved. As seen above, this simple exclusion has a multi-layer impact on your NAV, return on investment, and general relationship with the AMC.

What is the difference between direct plan and regular plan?

Direct and Regular plans are just two different options of the same mutual fund scheme. It is managed by the same fund manager and investments for both is in the same stocks and bonds.

Do direct funds have a higher Nav than regular mutual funds?

If the fees paid to the agents can be avoided, then the amounting NAV is higher. As a result, direct funds have a higher NAV than regular funds of the same mutual fund. As a result, your total investment value is higher in a direct fund. Let’s take the help of an example to understand exactly how this might affect you: