Archive · 21 Jul 2026
Direct Mutual Fund Plans Gain Popularity in India
In India, more people are choosing to invest in mutual funds directly rather than through distributors.
This is because direct plans are cheaper and offer better returns.
However, distributor networks are still important for those who need help with their investments.
The data shows that over the past five years, about 78-80% of new investments in mutual funds have been made directly.
This trend is more noticeable among individual investors, while institutional investors still prefer using distributor networks.
Direct mutual fund plans have seen a significant increase in popularity in India.
About 78-80% of gross purchases in mutual funds over the last five years have been direct.
Individual investors prefer direct plans due to lower costs and higher returns.
Distributor networks remain relevant for investors seeking guidance and personalized services.
Institutional investors tend to use distributor networks more than individual investors.
- Who
- Individual and institutional investors in India
- What
- Shift towards direct mutual fund plans
- When
- Over the last five years
- Where
- India
- Why
- Due to lower costs and higher returns for individual investors, while distributor networks offer guidance and personalized services.
Direct Mutual Fund Plans
Distributor Networks
Investment Preference
Direct Mutual Fund Plans
Direct plans are preferred by individual investors due to lower costs and higher returns.
Distributor Networks
Distributor networks are still relevant for investors who need guidance and personalized services.
Market Trends
Direct Mutual Fund Plans
Direct plans have seen a significant increase in gross purchases over the past five years.
Distributor Networks
Distributor networks continue to play a crucial role in the mutual fund industry, especially for institutional investors.
- Regulatory Body
- Securities and Exchange Board of India (Sebi)
- Percentage of Direct Purchases
- 78-80%
- Time Period
- Last five years
- Investor Types
- Individual and Institutional