Direct plans do not have to pay commissions and hence they have higher investible surplus. Due to this higher amount available, their NAV is higher than their regular counterpart. Higher NAV does not mean that you are getting less worth of your money. For example, If you have 10,000 Rs. to invest and NAV of Regular plan is 10 Rs and Direct is 11 Rs, then you will get 1000 units under Regular plan and 909.09 units under Direct plan. The amount invested is still the same. The returns in Direct plan will be higher than that of the Regular plan.
Why Direct plans have higher NAV than Regular plans? Does this mean I am getting lower value on Direct plans?
Modified on: Thu, 5 Oct, 2017 at 10:18 PM
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