A decade of wealth creation

As direct plans turn 10, we look at how they have helped you build more wealth

On January 1, 2023, the direct plan turned 10. In retrospect, introducing these plans is not only the biggest innovation of the past decade but also the best from an investor's perspective.

Before that, even if you were investing in mutual funds without the help of a distributor, you were paying a high expense ratio (due to the inbuilt commission). But rolling out of direct plans ensured you saved about 1 per cent in equity mutual funds and 0.5 per cent in debt funds. While the difference seems negligible on paper, it is a gamechanger in financial terms. Let's give you real numbers to illustrate the significance.

The lump-sum route