What is the key difference between direct and regular mutual funds?

"Regular funds have higher expense ratios due to distribution commissions." "Direct funds invest in riskier assets, leading to higher returns." "Regular funds are only available to institutional investors." "Direct funds have a lock-in period, while regular funds do not."

Why do direct mutual funds generally have higher returns than regular funds?

"Direct funds have access to exclusive investment opportunities." "Regular funds are subject to government regulations that limit returns." "Direct funds have lower expense ratios, allowing more investment capital to grow." "Regular funds prioritize capital preservation over high returns."

What does NAV represent in the context of mutual funds?

"The total number of units held by investors in a particular fund." "The risk level associated with investing in a specific mutual fund." "The value of one unit of a mutual fund, calculated by dividing total assets by outstanding units." "The annual dividend payout offered by a mutual fund to its investors."

What potential drawback of regular mutual funds is highlighted in the text?

"Regular funds often have hidden fees not disclosed to investors." "The commission-based compensation of advisors can create conflicts of interest." "Regular funds are more susceptible to market volatility than direct funds." "The complex structure of regular funds makes them difficult for average investors to understand."

What advantage of direct mutual funds is emphasized in the text?

"Direct funds offer tax benefits not available to regular fund investors." "Investors have greater control and transparency over their investments with direct funds." "Direct funds are guaranteed to outperform regular funds over the long term." "Investors in direct funds receive personalized financial advice from dedicated advisors."