Share of MF assets under direct plans drops for the first time since 2013

The proportion of mutual fund (MF) assets held under direct plans dropped at the end of 2017-18 for the first time since 2013, when the mandatory direct category was introduced. 

Data from MF tracker Value Research reveals the share of direct assets, up from 15 per cent to 40 per cent between FY13 and FY 17, had dropped to above 38 per cent.

The drop comes amid mushrooming of online platforms, which allow direct investment into MF for free. Kuvera, Clearfunds, Computer Age Management Services (CAMS, a registrar and transfer agent), and Karvy Computershare are some of these. Beside, Paytm