MF direct plans find favour in top-30 cities, catch up with regular schemes

Lower costs and ease of doing transactions are one of the few reasons investors have been moving towards such plans

The 35-trillion Mutual Fund (MF) industry is witnessing a shift to direct plans in the top-30 (T-30) cities of the country. The assets under management (AUM) of direct plans for T-30 cities stands at Rs 14.43 trillion slightly lower compared to regular plans which have assets of Rs 14.82 trillion as on July end.

Market participants say that this is probably the first time AUMs of both direct plans and regular plans for T-30 cities and beyond-30 (B-30 cities) are so close to each other. In March 2021 total AUM of direct plans for T-30 cities was Rs 12.78 trillion,