What are Direct Mutual Funds, and how does FYERS offer them?

What Are Direct Mutual Funds, and How Does FYERS Offer Them?

When investing in mutual funds via FYERS, you’ll notice that all offerings are under the Direct Plan variant. Direct mutual funds give investors access to the same schemes as regular plans—but at a lower cost—because there are no distributor commissions or advisory fees involved.

FYERS supports only direct mutual fund investments, enabling investors to maximise returns through low expense ratios and zero commissions.

How Direct Mutual Funds Work?

Direct mutual funds are offered directly by the Asset Management Company (AMC), without intermediaries such as agents or brokers. As a result, the AMC incurs lower distribution costs, which translates to a lower expense ratio for the investor and often leads to better long-term performance compared to regular plans.

Key Differences From Regular Plans

  • No intermediary: Investors transact directly with the AMC
  • Lower cost: No commission or distributor fee is charged
  • Higher NAV: Due to lower expenses, direct plans usually have slightly higher NAVs
  • Greater transparency: All costs and returns are clearly reflected in the fund factsheet

Whether you're investing in equity, debt, or hybrid mutual funds, FYERS provides access only to the direct versions of these schemes—helping you build your portfolio cost-effectively.

If you’re a self-directed investor comfortable making your own decisions, direct mutual funds via FYERS offer a transparent and cost-efficient path to long-term investing.

What If...

ScenarioExplanation
You invest through FYERSAll your mutual fund investments are in direct plans, with zero commission charges.
You are switching from a regular to a direct planYou must redeem the regular plan and reinvest in the direct plan. This may trigger capital gains tax.
You notice different NAVs for the same schemeDirect plans have higher NAVs than regular ones due to lower expense ratios. This is expected.

Last updated: 12 Sep 2025

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