Mutual Fund – Direct Plan vs Regular Plan (agent himself)

POSTED BY Ashok Chourasia ON July 4, 2013 12:45 pm COMMENTS (2)


I have read following links, 


So my understanding is,

If I want to invest for long term (30 yrs.), Direct plan is better. 

But, in direct plan I can save only on following commissions, 

1) Commission from Client

2) Upfront Commission

and not on 

3) Trail Commission

But, if I become agent and opt for regular plan with my ARN number, all commissions will come to me. 

(The investments will be on my wife’s name, who is not earning)

So, in long term (30 yrs.), Regular plan (with me being the agent) is better than Direct plan, provided all remaining conditions are same.

Please correct me, if I am wrong.


2 replies on this article “Mutual Fund – Direct Plan vs Regular Plan (agent himself)”

  1. Ashok Chourasia says:

    Hi Ashal,

    I didn’t understand your question.

    My question is,

    I invest money in my wife’s name, which means i am giving money to her as gift.

    Now, If my wife takes 2 MF plans —
    1) abc – growth – direct – investing 5k per month SIP
    2) abc – growth – regular – investing 5k per month SIP (and if I am the agent. I will be earning commissions as agent on this plan)

    After 30 years, which plan will give us more benefit.
    Return from Direct Plan
    (Return from regular plan + trail commission earned by me)

  2. Dear Ashok, can the income to your wife be reinvested at the same earning rate as it ‘ll hapen in Direct plans? Think over it.



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