n NISM Certifications
X NISM Series X
Medium

What is different when comparing a Direct plan and a Regular plan of the same mutual fund?

Practice question from NISM Series XA- Investment Adviser (Level 1) Mock Test 4 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    NAV

  2. B

    Expense ratio

  3. C

    Returns

  4. All of these factors

    Correct answer

Why this is the answer

Direct plans have higher NAVs, lower expense ratios, and potentially higher returns.

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