A number of mutual fund houses are focusing on 'direct plan' mode to sell their schemes, a move that may maximise the returns for the investors as against regular plans involving distributors.Under the direct plan mode, investors can directly invest in mutual fund schemes without involving distributors or agents. They are required to visit fund house website and follow the process to invest in such schemes.
Since no fees would have to paid to distributors, expense ratio would be lower as compared to regular plans, which would eventually give higher returns to investors.Almost all the mutual fund houses provide direct plans, while big ones like HDFC MF, Reliance MF, ICICI Prudential MF, Axis MF, UTI MF and Birla Sunlife MF are planning to increase their shares through this route. Besides, Quantum Mutual Fund only deals in direct plans.