Direct plans of MFs - links and comparison of benefits

In continuation with my previous post, I saw an article in the economic times today ( while browsing on the ET app on my mobile) on some more information on Direct plans.

In summary, most HNI investors ( 65% assets) are using the Direct plans vs the retail customers where only 12% are using the direct plan way of investment.

This again is quite a big gap- Just showing that the smart money is using this method to drive more results.

Below is a quick demonstration of an investment profile of an initial start of 10L Rs and then lump sum investment of 2.4L per annum



As you can see over a 10 yr period assuming a return of 12% in direct plans, the difference can be a whopping 9.7L additional benefit to you the investor.

Now of course with moving to direct plans, it does come up with significant additional work.. and you need to decide if it is worth it.

Make the decision.. its simplefinancialsense

	SIP amount	Regular plan return	Direct plan return	Regular plan corpus	Direct plan corpus
Start	1,000,000	12	13.5	1,120,000	1,135,000
Yr 1	240000	12	13.5	1,523,200	1,560,625
Yr 2	240000	12	13.5	1,974,784	2,043,709
Yr 3	240000	12	13.5	2,480,558	2,592,010
Yr 4	240000	12	13.5	3,047,025	3,214,332
Yr 5	240000	12	13.5	3,681,468	3,920,666
Yr 6	240000	12	13.5	4,392,044	4,722,356
Yr 7	240000	12	13.5	5,187,890	5,632,274
Yr 8	240000	12	13.5	6,079,236	6,665,031
Yr 9	240000	12	13.5	7,077,545	7,837,211
Yr 10	240000	12	13.5	8,195,650	9,167,634
		Difference over 10 yrs	971,984