All videos · NISM Series V-A · Chapter 9

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Direct vs regular plan: what's actually different

Direct and regular plans of a scheme hold the same portfolio but have different NAVs, because the regular plan's expense ratio includes distributor commission.

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The full concept: Direct and regular plans

Worked example: A form submitted through a distributor, with "Direct" written in the ARN box, still goes into the regular plan, because the investment was routed through a distributor.

Exam trap: Direct and regular plans have different NAVs (direct is higher over time) but the same portfolio.

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