Last week, we wrote about how investing in Direct Plans vs Regular Plans could give an investor up to 0.7% extra returns annually. The differential is because of commissions that the distribtors get versus none in the Direct route.
Take the HDFC Equity Mutual Fund, for instance. The Fund was started on January 01, 1995 with a starting NAV was Rs. 10. The Direct Plan was introduced in January 2013.
This is how the NAVs of both the Plans of the Fund have grown since Jan 01, 2013:
On January 01, 2013, the NAV of the Regular Plan (the only one existing at that time) was Rs. 296.88. The Direct Plan was then introduced. Now, if investors chose to, they could enter into either Direct or Regular Plans at the same price. As of March 05 this year, the NAV of the Direct Plan (Rs. 494.84) is Rs. […]