What are the Benefits of a Regular Plan in Mutual Funds?

 A regular plan coexists with a direct plan, owing to the fact that direct plans were developed after the regular ones.

Previously, we had just routine plans. Direct plans were created afterward for knowledgeable investors who wanted to pick their own funds without paying for expert assistance.



The reasons why the regular plans continue to exist alongside the direct ones include:

1. Incentive for distributors to increase business: An AMC does not have enough personnel to personally reach out to the general public and convince them to invest. If a distributor is provided a financial incentive in the form of a commission, they will approach and convince more individuals.

2. Ignorance: Some people are unaware that a direct plan exists. They assume that buying a mutual fund requires going via a distributor.

3. Expertise: Becoming an informed investor takes time. Not everyone can do it as well as a professional. As a result, for some people, the extra money spent on guidance is justified.

4. Convenience: An agent can make it easier for the investor to make investments and complete the necessary paperwork. They can act as a mediator between the investor and the AMC, making things easier and simpler for them.

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