The benefits of Direct Mutual Funds online investments.

For most of us, investing in mutual funds is a big blurry world. First, you have to get through the ordeal of selecting the right few funds from amongst the hundreds on offer. Then, you have to get into the transaction mode yourself and understand the nitty gritty of investments.

From Jan 1, 2013 mutual funds started offering a new plan called “Direct Mutual Funds” in all their mutual fund schemes. So, if want to invest in a Mutual Fund Scheme A, it would come in the following variants.

Scheme A – Regular Plan – Growth
Scheme A –  Regular Plan – Dividend
Scheme A – Direct Plan – Growth
Scheme A –  Direct Plan – Dividend

The big difference between a regular plan and a direct plan is that in the latter, there is absolutely no payment of commissions to any distributor. The smart and informed investor chooses the ‘direct plan‘to invest in mutual funds.


Several online investing platforms such as Orowealth, FundsIndia, NJfundz, etc. started offering a single point online investment solution. Most banks too offer an online investing facility in mutual funds. One time signup with all the paperwork and you are done. You can simply login and start investing in and tracking your mutual funds.

Mutual fund houses, from their side, have also launched their own website applications where you can track, and invest in their schemes. You will have to register separately with each mutual fund thus creating many User IDs and passwords.