Positive impactSector
Mutual fund direct plans to become default on AMC apps from November 1
CNBC-TV18 1 hr ago·29 Oct 2026, 2:08 am
From November 1, mutual fund houses are required to make direct plans the default option on their mobile apps. This change, mandated by the market regulator SEBI, means that when an investor opens an app to invest, the system will automatically select the direct plan instead of the regular plan. This shift is designed to help investors save on the commission paid to distributors.
For investors, this move is significant because direct plans typically have lower expense ratios. By eliminating the middleman, the fund house passes the savings directly to the investor, which can lead to higher returns over the long term. This change aims to improve transparency and ensure that investors are fully aware of the costs associated with their investments.
Investors should review their existing investments to understand the difference in expense ratios between direct and regular plans. While this change simplifies the process of choosing direct plans, it is important for investors to stay informed about the fees they are paying and to make decisions based on their own financial goals.
Excerpt from CNBC-TV18
Published On Oct 29, 2026 | 07:38 IST Last Updated On Oct 29, 2026 | 07:38 IST SEBI announced that direct mutual fund plans will become the default option on AMC digital platforms starting November 1 to improve transparency and investor protection. Direct mutual fund plans will become the default option on asset…Read the original at CNBC-TV18
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- Category: Sector.
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