Table of Contents
Which one is better regular or direct mutual fund?
Higher Returns The returns of any direct mutual fund are always higher than the regular version of the same mutual fund. The main reason behind this is the ‘expense ratio’. The expense ratio is lower for direct plan vs regular plan as mentioned above.
Which type of fund is best?
For an investor looking for fixed returns when making a safe investment in mutual funds, the best option is to invest in a debt fund. Such a fund invests in debt instruments such as government bonds, company debentures, and any other fixed income asset. However, you should consult a financial advisor before investing.
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.
What is G and D in mutual fund?
Mutual fund houses offer two kinds of schemes: Growth and dividend. In the growth option, profits made by the scheme are invested back into it. The dividend option does not re-invest the profits made by the fund. Profits or dividends are distributed to the investor from time to time.
Which type of fund is more volatile?
If beta is greater than 1, the fund is more volatile than the index. If beta is less than 1, it is less volatile. A fund moves, on average, in the same direction of the index by a multiple of its beta. For example, if a fund’s beta is 1.5, it is more volatile than the index.
What is difference between direct and regular plan?
A Direct plan is what you buy directly from the mutual fund company (usually from their own website). Whereas a Regular plan is what you buy through an advisor, broker, or distributor (intermediary). In a regular plan, the mutual fund company pays a commission to the intermediary.
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.
What is the best mutual fund in the world?
The 25 Best Mutual Funds of All Time Fidelity Select Software & IT Services Wasatch Micro Cap Wasatch Morningstar category: U.S. Small Growth Inception date: June 19, 1995 Average annual return since inception: 15.96\% Micro-cap stocks – typically thought of as companies between Vanguard Health Care Investor Vanguard Morningstar category: U.S.
What is an ETF vs mutual fund?
ETFs vs. Mutual Fund: An Overview.
What is the difference between private funds and mutual funds?
The minimal investment for a share of a private mutual fund is much higher than that of a public mutual fund. Depending upon the number of investors in a private mutual fund, there is little or no government regulation. Private mutual funds, including hedge funds, tend to be more leveraged than public mutual funds.
What is the difference between direct and indirect investment?
Direct investments are those in which the investor owns the particular assets himself, while indirect investments are investments made in vehicles that pool investor money to buy or sell assets, according to Red Mountain Asset Research.