Difference between direct and growth

[mail2gr8]

Hi,

Can you tell me what is the difference between direct and growth plan?? With my experience, growth plan giving good return but I am little confused with the difference.

 

[TracerBullet]

Hi,

Can you tell me what is the difference between direct and growth plan?? With my experience, growth plan giving good return but I am little confused with the difference.

Direct implies less expenses. You cannot invest in Direct through distributor. They get extra fees.
Always use Direct. Over 20 years you will probably have 20-30% less if you dont use Direct.

Prefer growth, dividend i think gets taxed for MF. Anyway its not needed as you can withdraw if you need money.

So invest in DIRECT + growth funds.

 

[mail2gr8]

Sorry, I meant direct growth and regular growth difference. I have seen good returns on regular growth comparatively direct growth fund. Can you please clarify that??

 

[badarivt]

I think you are asking the difference between dividend and growth. Dividend is time to time payout of the dividend - usually annual or bi-annual. Growth is reinvestment of the dividend back in the fund and the entire amount is receivable on exit

 

[TracerBullet]

Sorry, I meant direct growth and regular growth difference. I have seen good returns on regular growth comparatively direct growth fund. Can you please clarify that??

Direct implies less expenses. You cannot invest in Direct through distributor. They get extra fees.
Always use Direct. Over 20 years you will probably have 20-30% less if you dont use Direct.[/B]

Regular vs Direct wrote here, Regular will give less than Direct - Regular has higher expenses (~0.5-1% Higher every year) than Direct which go to Broker.

I dont know what you meant by "returns on regular growth comparatively direct growth fund". For the same scheme regular will be less than Direct. After 20 years the difference between regular and direct will probably be ~20-30%.