Funds
What is direct plan?
The version of a mutual fund you buy without a distributor, at a lower fee.
Explained in more detail
Direct and regular plans hold exactly the same investments and are run by the same manager. The direct plan simply has no commission built into it, so its expense ratio is lower and its returns are higher by roughly that difference.
An example
For instanceThe same fund might charge 1.6% as a regular plan and 0.7% as a direct plan.
Why this matters to you
You will meet this word in broker apps, company results and market news. Knowing what it means is not the goal on its own. The goal is being able to judge whether a number is good or bad for the investment you are actually holding.
On AlphaVik, any time direct plan appears in a view or a lesson, you can hover or tap the word and this explanation comes with it. You never have to leave the page to look something up.