Mutual Fund schemes, offer two plans- Regular and Direct. Most of the investors Investing in Mutual Funds usually prefer regular funds, but nevertheless, the interest for direct funds amongst new investors has let to increase in demand. The key Factor that differentiates between both these plans are expense ratio, the direct plan’s expense ratio is less as compared to that of a regular plan.
Direct plans are not separate schemes, but they are a variation of the regular plan with a lower expense ratio. So, an investor who wants to invest in a Mutual Fund can either opt for a regular plan or a direct plan. Ideally, an investor who can independently invest in Mutual Funds without seeking the help of an advisor can invest in direct plans.
Let’s learn more about direct fund investments, along with some of the best direct mutual funds to invest.
Direct funds are available through a limited number of channels. An investor can mainly invest through the fund house itself, a very few third party securities intermediaries, RTAs such as CAMS/Karvy, and authorized local representatives of the fund house. Mostly, in direct mutual fund investments, no arn (Application Reference Number) is quoted in the investor’s application. Therefore, the commission paid to the investors is very low or sometimes nil. This decreases the cost of customer acquisition for the AMC.
Other than the expense ratio, direct plans are also those where the fund house does not charge distributor expenses/transaction charges/trail fees. The Net Asset Value (NAV) of the mutual fund-direct plan can be higher compared to a regular mutual fund plan.
As the expense ratio of the direct plan is lower, it is said that the investors would get higher returns in comparison to regular plans. A return of about 0.5 percent to 1.5 percent would be higher, depending upon the fund house expense ratio. So, ideally, investors who want to increase their returns by way of reducing the expense ratio can invest in direct mutual fund plans.
Talk to our investment specialist
Here are some of the best direct mutual fund plans based, on- equity & hybrid 3 years returns, debt on 1 year returns, that you can consider while investing.
Fund NAV Net Assets (Cr) 3 MO (%) 6 MO (%) 1 YR (%) 3 YR (%) 5 YR (%) 2024 (%) Franklin India Opportunities Fund - Direct Growth ₹281.073
↑ 3.01 ₹7,376 3.8 20.3 0.6 29.9 30 39.2 Franklin Build India Fund - Direct Growth ₹160.746
↑ 0.34 ₹2,950 0.9 19 -3.4 28.3 32.7 29.1 Franklin India Smaller Companies Fund - Direct Growth ₹190.678
↑ 0.84 ₹13,825 -1.8 18 -8.6 23.6 30.2 24.2 Franklin India Technology Fund - Direct Growth ₹566.3
↑ 7.30 ₹1,888 2.8 7.8 -6 23.5 21.5 29.8 Franklin India Prima Fund - Direct Growth ₹3,071.37
↑ 7.65 ₹12,540 1.3 17.8 -1 22.8 25 32.9 Franklin India Feeder - Franklin U S Opportunities Fund - Direct Growth ₹88.7224
↓ -0.61 ₹4,223 10.8 8.2 18.2 21.5 12.2 28.4 DSP Micro Cap Fund - Direct Growth ₹216.673
↑ 0.01 ₹17,005 1.7 24.3 -1 21.4 28.6 26.7 Sundaram SMILE Fund - Direct Growth ₹281.822
↑ 1.37 ₹3,394 0.8 22 -3 20.8 28.8 20.4 Edelweiss Economic Resurgence Fund - Direct Growth ₹43.594
↓ -0.02 ₹2,768 2.1 15.6 -2.4 19.4 23.1 27.4 Franklin India Taxshield - Direct Growth ₹1,617.44
↓ -4.48 ₹6,706 -0.8 12.6 -3.1 19.1 23.6 23.4 Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 1 Sep 25 Research Highlights & Commentary of 10 Funds showcased
Commentary Franklin India Opportunities Fund - Direct Franklin Build India Fund - Direct Franklin India Smaller Companies Fund - Direct Franklin India Technology Fund - Direct Franklin India Prima Fund - Direct Franklin India Feeder - Franklin U S Opportunities Fund - Direct DSP Micro Cap Fund - Direct Sundaram SMILE Fund - Direct Edelweiss Economic Resurgence Fund - Direct Franklin India Taxshield - Direct Point 1 Upper mid AUM (₹7,376 Cr). Bottom quartile AUM (₹2,950 Cr). Top quartile AUM (₹13,825 Cr). Bottom quartile AUM (₹1,888 Cr). Upper mid AUM (₹12,540 Cr). Lower mid AUM (₹4,223 Cr). Highest AUM (₹17,005 Cr). Lower mid AUM (₹3,394 Cr). Bottom quartile AUM (₹2,768 Cr). Upper mid AUM (₹6,706 Cr). Point 2 Oldest track record among peers (12 yrs). Established history (12+ yrs). Established history (12+ yrs). Established history (12+ yrs). Established history (12+ yrs). Established history (12+ yrs). Established history (12+ yrs). Established history (12+ yrs). Established history (10+ yrs). Established history (12+ yrs). Point 3 Not Rated. Not Rated. Not Rated. Not Rated. Not Rated. Not Rated. Not Rated. Not Rated. Not Rated. Not Rated. Point 4 Risk profile: Moderately High. Risk profile: High. Risk profile: Moderately High. Risk profile: High. Risk profile: Moderately High. Risk profile: High. Risk profile: Moderately High. Risk profile: Moderately High. Risk profile: High. Risk profile: Moderately High. Point 5 5Y return: 30.03% (upper mid). 5Y return: 32.67% (top quartile). 5Y return: 30.22% (top quartile). 5Y return: 21.47% (bottom quartile). 5Y return: 25.02% (lower mid). 5Y return: 12.17% (bottom quartile). 5Y return: 28.58% (upper mid). 5Y return: 28.79% (upper mid). 5Y return: 23.10% (bottom quartile). 5Y return: 23.61% (lower mid). Point 6 3Y return: 29.89% (top quartile). 3Y return: 28.31% (top quartile). 3Y return: 23.60% (upper mid). 3Y return: 23.46% (upper mid). 3Y return: 22.79% (upper mid). 3Y return: 21.55% (lower mid). 3Y return: 21.42% (lower mid). 3Y return: 20.82% (bottom quartile). 3Y return: 19.42% (bottom quartile). 3Y return: 19.13% (bottom quartile). Point 7 1Y return: 0.56% (top quartile). 1Y return: -3.43% (bottom quartile). 1Y return: -8.57% (bottom quartile). 1Y return: -5.97% (bottom quartile). 1Y return: -1.02% (upper mid). 1Y return: 18.20% (top quartile). 1Y return: -0.96% (upper mid). 1Y return: -3.03% (lower mid). 1Y return: -2.39% (upper mid). 1Y return: -3.08% (lower mid). Point 8 Alpha: 3.08 (upper mid). Alpha: 0.00 (lower mid). Alpha: -4.68 (bottom quartile). Alpha: 3.44 (top quartile). Alpha: 2.37 (upper mid). Alpha: -6.49 (bottom quartile). Alpha: 0.00 (bottom quartile). Alpha: 4.24 (top quartile). Alpha: 0.80 (lower mid). Alpha: 0.94 (upper mid). Point 9 Sharpe: -0.22 (upper mid). Sharpe: -0.45 (bottom quartile). Sharpe: -0.55 (bottom quartile). Sharpe: -0.50 (bottom quartile). Sharpe: -0.20 (upper mid). Sharpe: 0.72 (top quartile). Sharpe: -0.03 (top quartile). Sharpe: -0.11 (upper mid). Sharpe: -0.39 (lower mid). Sharpe: -0.37 (lower mid). Point 10 Information ratio: 2.01 (top quartile). Information ratio: 0.00 (lower mid). Information ratio: 0.10 (upper mid). Information ratio: 1.40 (upper mid). Information ratio: 0.08 (lower mid). Information ratio: -1.39 (bottom quartile). Information ratio: 0.00 (bottom quartile). Information ratio: -0.29 (bottom quartile). Information ratio: 1.07 (upper mid). Information ratio: 1.58 (top quartile). Franklin India Opportunities Fund - Direct
Franklin Build India Fund - Direct
Franklin India Smaller Companies Fund - Direct
Franklin India Technology Fund - Direct
Franklin India Prima Fund - Direct
Franklin India Feeder - Franklin U S Opportunities Fund - Direct
DSP Micro Cap Fund - Direct
Sundaram SMILE Fund - Direct
Edelweiss Economic Resurgence Fund - Direct
Franklin India Taxshield - Direct
Fund NAV Net Assets (Cr) 3 MO (%) 6 MO (%) 1 YR (%) 3 YR (%) 5 YR (%) 2024 (%) Franklin India Income Builder Account - Plan A - Direct Growth ₹109.02
↓ -0.03 ₹1,109 1 6 10 8 6.8 8.2 Axis Corporate Debt Opportunities Fund - Direct Growth ₹18.2668
↑ 0.00 ₹9,403 0.7 5 9 8.1 6.8 8.7 UTI Short Term Income Fund - Direct Growth ₹34.0916
↑ 0.00 ₹3,296 0.9 4.5 8.5 7.9 7.5 8.4 HDFC Floating Rate Income Fund - Short Term Plan - Direct Growth ₹51.5733
↓ 0.00 ₹15,497 1.3 4.5 8.4 8.1 6.9 8.5 Franklin India Banking And PSU Debt Fund - Direct Growth ₹23.6655
↓ -0.01 ₹539 0.8 4.5 8.2 7.5 6.2 8.1 Franklin India Savings Plus Fund Retail Option - Direct Growth ₹52.518
↑ 0.00 ₹4,080 1.6 4.3 8.1 7.6 6.1 7.8 UTI Treasury Advantage Fund - Direct Growth ₹3,647.52
↑ 0.02 ₹3,211 1.5 4.3 8.1 7.4 7.2 7.8 UTI Money Market Fund - Direct Growth ₹3,162.14
↑ 0.21 ₹20,554 1.7 4.2 8 7.6 6.2 7.8 Reliance Dynamic Bond Fund - Direct Growth ₹40.1369
↑ 0.02 ₹4,629 -0.7 4 8 7.9 6 9.4 Edelweiss Bond Fund - Direct Growth ₹31.7436
↑ 0.00 ₹2,240 1.6 4.2 7.9 7.3 5.9 7.7 Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 2 Sep 25 Research Highlights & Commentary of 10 Funds showcased
Commentary Franklin India Income Builder Account - Plan A - Direct Axis Corporate Debt Opportunities Fund - Direct UTI Short Term Income Fund - Direct HDFC Floating Rate Income Fund - Short Term Plan - Direct Franklin India Banking And PSU Debt Fund - Direct Franklin India Savings Plus Fund Retail Option - Direct UTI Treasury Advantage Fund - Direct UTI Money Market Fund - Direct Reliance Dynamic Bond Fund - Direct Edelweiss Bond Fund - Direct Point 1 Bottom quartile AUM (₹1,109 Cr). Upper mid AUM (₹9,403 Cr). Lower mid AUM (₹3,296 Cr). Top quartile AUM (₹15,497 Cr). Bottom quartile AUM (₹539 Cr). Upper mid AUM (₹4,080 Cr). Lower mid AUM (₹3,211 Cr). Highest AUM (₹20,554 Cr). Upper mid AUM (₹4,629 Cr). Bottom quartile AUM (₹2,240 Cr). Point 2 Oldest track record among peers (12 yrs). Established history (8+ yrs). Established history (12+ yrs). Established history (12+ yrs). Established history (11+ yrs). Established history (12+ yrs). Established history (12+ yrs). Established history (12+ yrs). Established history (12+ yrs). Established history (12+ yrs). Point 3 Not Rated. Not Rated. Not Rated. Not Rated. Not Rated. Not Rated. Not Rated. Not Rated. Not Rated. Not Rated. Point 4 Risk profile: Moderate. Risk profile: Moderate. Risk profile: Moderate. Risk profile: Moderately Low. Risk profile: Moderate. Risk profile: Moderately Low. Risk profile: Moderately Low. Risk profile: Low. Risk profile: Moderate. Risk profile: Moderate. Point 5 1Y return: 9.96% (top quartile). 1Y return: 9.03% (top quartile). 1Y return: 8.46% (upper mid). 1Y return: 8.38% (upper mid). 1Y return: 8.18% (upper mid). 1Y return: 8.08% (lower mid). 1Y return: 8.06% (lower mid). 1Y return: 8.03% (bottom quartile). 1Y return: 7.99% (bottom quartile). 1Y return: 7.93% (bottom quartile). Point 6 1M return: -0.03% (lower mid). 1M return: -0.06% (bottom quartile). 1M return: 0.04% (lower mid). 1M return: 0.21% (upper mid). 1M return: -0.08% (bottom quartile). 1M return: 0.47% (top quartile). 1M return: 0.39% (upper mid). 1M return: 0.47% (top quartile). 1M return: -0.85% (bottom quartile). 1M return: 0.45% (upper mid). Point 7 Sharpe: 1.87 (bottom quartile). Sharpe: 2.15 (lower mid). Sharpe: 2.17 (lower mid). Sharpe: 2.82 (upper mid). Sharpe: 2.01 (bottom quartile). Sharpe: 3.37 (top quartile). Sharpe: 3.08 (upper mid). Sharpe: 3.45 (top quartile). Sharpe: 1.54 (bottom quartile). Sharpe: 3.30 (upper mid). Point 8 Information ratio: 0.00 (top quartile). Information ratio: 0.00 (top quartile). Information ratio: 0.00 (upper mid). Information ratio: 0.00 (upper mid). Information ratio: 0.00 (upper mid). Information ratio: 0.00 (lower mid). Information ratio: 0.00 (lower mid). Information ratio: 0.00 (bottom quartile). Information ratio: 0.00 (bottom quartile). Information ratio: 0.00 (bottom quartile). Point 9 Yield to maturity (debt): 6.85% (top quartile). Yield to maturity (debt): 6.74% (upper mid). Yield to maturity (debt): 6.75% (upper mid). Yield to maturity (debt): 6.98% (top quartile). Yield to maturity (debt): 6.77% (upper mid). Yield to maturity (debt): 6.08% (bottom quartile). Yield to maturity (debt): 6.55% (lower mid). Yield to maturity (debt): 6.16% (bottom quartile). Yield to maturity (debt): 6.56% (lower mid). Yield to maturity (debt): 6.08% (bottom quartile). Point 10 Modified duration: 2.47 yrs (lower mid). Modified duration: 3.07 yrs (bottom quartile). Modified duration: 2.58 yrs (bottom quartile). Modified duration: 1.63 yrs (upper mid). Modified duration: 2.53 yrs (lower mid). Modified duration: 0.49 yrs (top quartile). Modified duration: 0.87 yrs (upper mid). Modified duration: 0.56 yrs (top quartile). Modified duration: 4.01 yrs (bottom quartile). Modified duration: 0.65 yrs (upper mid). Franklin India Income Builder Account - Plan A - Direct
Axis Corporate Debt Opportunities Fund - Direct
UTI Short Term Income Fund - Direct
HDFC Floating Rate Income Fund - Short Term Plan - Direct
Franklin India Banking And PSU Debt Fund - Direct
Franklin India Savings Plus Fund Retail Option - Direct
UTI Treasury Advantage Fund - Direct
UTI Money Market Fund - Direct
Reliance Dynamic Bond Fund - Direct
Edelweiss Bond Fund - Direct
Fund NAV Net Assets (Cr) 3 MO (%) 6 MO (%) 1 YR (%) 3 YR (%) 5 YR (%) 2024 (%) JM Balanced Fund - Direct Growth ₹136.475
↑ 0.29 ₹841 1.6 10.6 -6 21.7 22.3 29.3 UTI Wealth Builder Fund - Direct Growth ₹82.572
↑ 0.03 ₹5,902 2.1 11.7 3.3 20 16.5 21.9 Edelweiss Prudent Advantage Fund - Direct Growth ₹72.63
↓ -0.09 ₹2,994 1.1 12.6 2.2 19 21.3 22.2 UTI Balanced Fund - Direct Growth ₹426.657
↓ -0.48 ₹6,422 -0.6 9.2 -1.3 16.3 19.8 20.5 Franklin India Balanced Fund - Direct Growth ₹306.435
↓ -0.44 ₹2,256 0 10.4 0.9 15.9 18.4 18.9 BNP Paribas Balanced Fund - Direct Growth ₹31.5136
↓ -0.01 ₹1,230 -0.3 11.3 -0.5 15.8 17.8 21.2 Axis Dynamic Equity Fund - Direct Growth ₹23.13
↓ -0.01 ₹3,431 -0.2 8 2.7 14.5 14.3 19 Edelweiss Equity Savings Advantage Fund - Direct Growth ₹28.0856
↑ 0.03 ₹750 2.7 8.3 7.9 12.3 11.9 14.5 UTI SPREAD Fund - Direct Growth ₹37.6866
↑ 0.02 ₹8,512 1.6 3.6 7.3 7.6 6.3 8.3 Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 2 Sep 25 Research Highlights & Commentary of 9 Funds showcased
Commentary JM Balanced Fund - Direct UTI Wealth Builder Fund - Direct Edelweiss Prudent Advantage Fund - Direct UTI Balanced Fund - Direct Franklin India Balanced Fund - Direct BNP Paribas Balanced Fund - Direct Axis Dynamic Equity Fund - Direct Edelweiss Equity Savings Advantage Fund - Direct UTI SPREAD Fund - Direct Point 1 Bottom quartile AUM (₹841 Cr). Upper mid AUM (₹5,902 Cr). Lower mid AUM (₹2,994 Cr). Top quartile AUM (₹6,422 Cr). Lower mid AUM (₹2,256 Cr). Bottom quartile AUM (₹1,230 Cr). Upper mid AUM (₹3,431 Cr). Bottom quartile AUM (₹750 Cr). Highest AUM (₹8,512 Cr). Point 2 Oldest track record among peers (12 yrs). Established history (12+ yrs). Established history (12+ yrs). Established history (12+ yrs). Established history (12+ yrs). Established history (8+ yrs). Established history (8+ yrs). Established history (10+ yrs). Established history (12+ yrs). Point 3 Not Rated. Not Rated. Not Rated. Not Rated. Not Rated. Not Rated. Not Rated. Not Rated. Not Rated. Point 4 Risk profile: Moderately High. Risk profile: Moderately High. Risk profile: Moderately High. Risk profile: Moderately High. Risk profile: Moderately High. Risk profile: Moderately High. Risk profile: Moderately High. Risk profile: Moderately High. Risk profile: Moderately Low. Point 5 5Y return: 22.28% (top quartile). 5Y return: 16.46% (lower mid). 5Y return: 21.29% (top quartile). 5Y return: 19.81% (upper mid). 5Y return: 18.38% (upper mid). 5Y return: 17.83% (lower mid). 5Y return: 14.29% (bottom quartile). 5Y return: 11.94% (bottom quartile). 5Y return: 6.29% (bottom quartile). Point 6 3Y return: 21.70% (top quartile). 3Y return: 20.02% (top quartile). 3Y return: 19.02% (upper mid). 3Y return: 16.33% (upper mid). 3Y return: 15.85% (lower mid). 3Y return: 15.83% (lower mid). 3Y return: 14.47% (bottom quartile). 3Y return: 12.27% (bottom quartile). 3Y return: 7.62% (bottom quartile). Point 7 1Y return: -6.03% (bottom quartile). 1Y return: 3.32% (upper mid). 1Y return: 2.21% (lower mid). 1Y return: -1.25% (bottom quartile). 1Y return: 0.92% (lower mid). 1Y return: -0.45% (bottom quartile). 1Y return: 2.71% (upper mid). 1Y return: 7.86% (top quartile). 1Y return: 7.34% (top quartile). Point 8 1M return: 0.12% (lower mid). 1M return: 1.52% (top quartile). 1M return: 0.39% (upper mid). 1M return: -0.64% (bottom quartile). 1M return: -0.07% (bottom quartile). 1M return: -0.21% (bottom quartile). 1M return: 0.22% (lower mid). 1M return: 1.12% (top quartile). 1M return: 0.41% (upper mid). Point 9 Alpha: -5.77 (bottom quartile). Alpha: 0.00 (lower mid). Alpha: 2.86 (top quartile). Alpha: 0.29 (upper mid). Alpha: 0.94 (top quartile). Alpha: 0.10 (upper mid). Alpha: 0.00 (lower mid). Alpha: 0.00 (bottom quartile). Alpha: 0.00 (bottom quartile). Point 10 Sharpe: -0.79 (bottom quartile). Sharpe: -0.15 (upper mid). Sharpe: -0.14 (upper mid). Sharpe: -0.35 (bottom quartile). Sharpe: -0.28 (lower mid). Sharpe: -0.37 (bottom quartile). Sharpe: -0.15 (lower mid). Sharpe: 0.41 (top quartile). Sharpe: 2.95 (top quartile). JM Balanced Fund - Direct
UTI Wealth Builder Fund - Direct
Edelweiss Prudent Advantage Fund - Direct
UTI Balanced Fund - Direct
Franklin India Balanced Fund - Direct
BNP Paribas Balanced Fund - Direct
Axis Dynamic Equity Fund - Direct
Edelweiss Equity Savings Advantage Fund - Direct
UTI SPREAD Fund - Direct