Returns Regular
Returns from regular plans are slightly lower than those from direct plans, mainly due to the higher expense ratio that includes commissions for intermediaries. Since both regular and direct plans invest in the same underlying assets, their gross returns are the same. However, after deducting the additional cost of advisory or distribution services in regular plans, the net returns to the investor are slightly reduced. Despite this, regular plans may still appeal to investors seeking convenience and professional guidance. The support received in choosing and managing funds can offset the marginally lower returns, especially for those unfamiliar with market dynamics.
Related Terms
Index Futures
Index futures are derivative contracts tied to an underlying index, such as Nifty Bank, Finnifty,...
Iron Condor
An Iron Condor options strategy allows traders to profit in a sideways market that exhibits...
Commodity Spread Straddle
A commodity straddle is an options trading strategy where a trader buys both a call...
Basis Of Allotment
The basis of allotment defines the criteria for distributing shares to investors, typically during IPOs....
Ex-Dividend Date
The ex-dividend date is the trading day when a stock’s new buyer no longer qualifies...
Deferred Tax Asset
Deferred tax Asset in financial statements denotes future tax assets stemming from temporary differences.This arises...
