Why is the NAV of a direct plan mutual fund typically higher than that of a regular plan for the same fund? Option: "Direct plans have a longer investment horizon", "Direct plans invest in higher-growth assets", "Regular plans have higher marketing and distribution costs", "Regular plans are subject to higher taxes"

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Why is the NAV of a direct plan mutual fund typically higher than that of a regular plan for the same fund?

"Direct plans have a longer investment horizon"

"Direct plans invest in higher-growth assets"

"Regular plans have higher marketing and distribution costs"

"Regular plans are subject to higher taxes"

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According to the article, what impact does the expense ratio have on the Net Asset Value (NAV) of a mutual fund?

"Regular plans consistently have a higher NAV due to higher returns."

"Direct plans tend to have a higher NAV due to lower expense ratios."

"Expense ratios have a negligible impact on NAV over the long term."

"NAV is determined solely by market performance, regardless of expense ratios."

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What is the key difference between a 'regular plan' and a 'direct plan' in mutual funds?

Regular plans invest in large-cap companies, while direct plans focus on small-cap companies.

Regular plans are managed by professional fund managers, while direct plans are self-managed by investors.

Regular plans offer higher returns compared to direct plans.

Regular plans involve distributor commissions, while direct plans do not.

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Why do Direct Mutual Funds typically have a higher NAV compared to Regular Funds?

Government subsidies

Absence of distributor commissions

Better fund performance

Higher investment limits

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What is the key difference between direct and regular mutual fund plans in India?

"Regular plans offer higher returns due to active management by brokers."

"Direct plans are only available for specific types of mutual funds."

"Regular plans are subject to government regulations, while direct plans are not."

"Direct plans have lower expense ratios because they exclude distributor fees."

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What is the primary advantage of investing in direct mutual fund plans?

"Access to exclusive investment opportunities not available in regular plans."

"Potential for higher returns due to lower expense ratios."

"Guaranteed higher returns compared to regular plans."

"Lower risk of investment loss compared to regular plans."