Regular plan has upto 1.5% extra commission for agents while Direct plan has 0 commission.
Assuming direct plan generates 12% returns, while same regular plan generates 11%
The switch is a gateway to switch your regular mutual fund plan to a direct one.
As the name suggests, a direct plan is purchased directly from the mutual fund company (AMCs) or online platforms without paying any commission and brokerage. On the other hand, a regular plan is what you have to buy through an advisor, broker, or distributor (financial intermediaries).
Switching to a direct mutual fund increases your return on investment, unlike regular mutual funds that usually have a higher expense ratio thus reducing your ROI.
No. Only regular plans have up to 1.5% extra commission which goes to agents while you don't have to pay a single penny for commission in direct plans.
If you have invested via Groww, simply go to your dashboard and select the regular fund you want to switch. Then, Click on ‘Switch’ and then click on ‘Select Direct Fund’. Lastly, select the fund and confirm the switch.
Yes, you can either switch to the direct plan of the same mutual fund you have invested in or any other direct mutual fund of the same AMC. You can utilize the search bar on Groww to look for more funds and invest.
Groww does not ask for any switching charges, but some charges such as exit load and capital gains tax might be applicable.