We all like things that are cheaper, mainly because of the obvious lower expenses. With Direct funds, the cost is low and at first everything seems fine. However, a time will come when you feel stuck or confused because you are not sure whether you are choosing the right funds. That is exactly when you should consider shifting from Direct to Regular mutual funds, because in a Regular plan, you receive guidance and support from a mutual fund advisor.
Below, I explain everything in a detailed and simple manner so you can understand why this is necessary.
1. What is Direct vs Regular?
Direct Plan:
This means you invest fully on your own. There is no advisor or expert involved, so you must choose funds yourself, track them yourself, and make all the decisions. The main benefit is that the expense ratio is lower, so the cost is less. Direct Plans are usually suitable only for people who already understand mutual funds very well and are confident about what to choose.
Regular Plan:
This means you invest with the support of a mutual fund advisor. You get proper guidance, help in choosing funds, and support whenever you are confused. The cost is a little higher because the advisor fee is included, but you get expert help and direction which means you are less likely to make wrong choices and suffer losses. Regular Plans are suitable for anyone who wants guidance and someone who can steer them in the right direction.
Why Many People Switch to Regular
Many people choose to switch from Direct to Regular Mutual Funds for the following reasons:
- “I don’t know if this fund is correct”
- “I don’t know when to switch”
- “Returns are okay, but could be better”
- “Market goes up and down, I panic”
- “I don’t know how to review my portfolio”
- “I need someone to guide me”
When these people switch to Regular, the advisor helps them with:
- Fund selection
- Reviewing performance
- Switching when needed
- Tax planning
- Long-term planning
- Emotional control during market volatility
Basically, by choosing advisors, you don’t have to make big decisions by yourself because the fund advisor will give you full support.
How to Switch from Direct to Regular Mutual Funds
Step 1: Check Your Current Investment
Start by noting your fund name, folio number, and the number of units you have invested. Make sure the same fund is available in a Regular Plan so the switch is possible.
Step 2: Contact the Mutual Fund
Get in touch with a mutual fund manager and request a Switch Form or Plan Change Form. Fill in your details including folio number, fund, and units, then select the Regular Plan. Submit the form to the fund house. The switch usually completes within 1–3 business days.
Step 3: Start Receiving Advisor Support
Once the switch is complete, you can enjoy the guidance and support of a mutual fund advisor. They help you choose the right funds, review your portfolio, plan long-term goals, and stay calm during market ups and downs. With an advisor, investing becomes easier, smarter, and more confident.
Source: Economic times