Current Affairs - Business - Discussion

Paisabazaar.com, an online marketplace for Loans and Credit Cards announced to offer direct Mutual Fund plans to retail customers and has thereby became India's first major platform to come up with such offering. Broadly speaking, Mutual Fund plans are available in two variants - 'Regular' and 'Direct'. Both these variants are exactly same in terms of investment strategy and fund management. However, the key difference is that, in Regular plans, a part of customers' investment (1% in most cases) is paid to the brokers/financial advisor as commission by the mutual fund company, while in a direct mutual fund there is no such type of commission payout.