What does Direct Plan work ?

SEBI has required mutual funds to launch a direct plan, which is a plan that allows direct investments. Direct investments are those not routed through distributors, and this was mandatory starting January 2013. This separate plan is exempted from distribution expenses, commissions, etc. and has a lower cost ratio. A separate NAV is also available for the plan. You can invest in lump sums, i.e. You can either make a lump sum payment or use a Systematic Investment Plan.