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Wednesday, January 2, 2013

Product Note - Direct Investment in Mutual Fund



From  January 2013, Mutual Fund  will start rolling out direct plans for various schemes. Since no distributors or brokers will be involved in the transactions.

Introduction of Direct Plan

Direct plan is only for investors who purchase / subscribe Unit in a scheme directly with the fund and is not available for investors who route their investment through a Distributors (Broker/agent/IFA).



Scheme Eligibility

Direct plan shall be introduced in following schemes of the Fund:

  • all open ended schemes of the funds except (i) Exchange traded Fund and (ii) plan discontinue for further subscriptions.
  • New fund offer of Open ended schemes , Fixed term plans , Capital Protection Fund launched on or after the Effective Date
  • Interval Income Schemes 
Plan / Option / Suboptions


All Plans / options / sub options offer under the schemes will also be available for subscription under direct Plan. Thus, from the Effective Date, there shall be 2 plans available for subscription under scheme viz., Regular Plan and Direct Plan. Portfolio of the Scheme under Regular Plan and Direct Plan will be common.

Scheme Characteristics


Scheme Characteristic such as Investment  Objective, Asset allocation pattern, Investment strategy , risk factors and term and conditions will be the same for the Regular Plan and Direct Plan


Eligible investors/ modes of applying 

All categories of investors (whether existing or new Unitholders) as permitted under the Scheme Information document of the scheme are eligible to subscribe under direct plan. Investment under direct plan can made through various mode offers by the Fund for investing directly with the Fund 


Redemption Request

Where unit under a scheme are held under both Regular and direct plans and the redemption/ switch request pertains to the Direct plan, the same must clearly be mentioned on the request , failing which the request would be process from Regular plan.


Tax consequences

Switch / redemption may entail tax consequences. Investor should consult their professional tax advisor before initiating such request.


 Please share your view with us.  Are you Interested to know more about direct investment. 

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