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Direct Mutual Fund Plans Gain Popularity as Retail Investors Shift Preferences

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Direct Mutual Fund Plans Gain Popularity as Retail Investors Shift Preferences

Analysed 25 Aug 2026·3 sources analysed·Business
Direct Mutual Fund Plans Gain Popularity as Retail Investors Shift PreferencesPreviousNext

Mutual fund investors in India are increasingly opting for direct plans, which now account for 45.1% of industry assets under management (AUM) as of March 2026, up from 43.4% in 2021. Retail investors' share in direct plans rose from 21.4% to 36.7% over five years. Direct plans have lower expense ratios due to the absence of distributor commissions, leading to potentially higher returns over time. However, distributors remain significant for small-ticket systematic investment plans (SIPs), especially below Rs 500, while direct investments dominate higher SIP amounts, driven by greater digital access and investor awareness.

Sentiment
53%
TBN's observations

First-hand measurement across 3 sources

We measured how 3 outlets covered this story. No outlet gave this story a measurable political slant — there is no left–right reading to report. Overall sentiment is neutral (53/100). Lens Score 35/100.

Outlets measured: moneycontrol, mint, thefinancialexpress. See how each one headlined and framed the same story in the source comparison below.

AI analysis of 3 sources · Published under editorial oversight by The Balanced News
Analysed 25 Aug 2026· How this analysis is produced· Editorial standards· Corrections

AI Analysis

Sentiment — Neutral (53/100)

Sentiment was consistent across outlets (50–55/100), indicating broadly factual reporting rather than editorialising.

Coverage timeline

thefinancialexpress broke this story on 24 Aug, 03:49 pm. Other outlets followed.

24 Aug, 03:49 pm3 sources · 22 h25 Aug, 01:25 pm
AI analysis by the TBN Bias Engine · beat methodology byMrunal Wange· Business & Economy Editor· editorial standards byOjas Kale
← Previous
HEG Demerger Effective September 1, Creating Two Separate Listed Companies
Next →
Strategies for Wealth Growth, Retirement Planning, and Financial Independence in India
  1. 1
    thefinancialexpress24 Aug, 03:49 pm
    Mutual fund distributors account for over 75 assets from SIPs below Rs 500
  2. 2
    mint24 Aug, 04:44 pm
    Direct vs regular mutual funds: Why the same scheme can give different returns Mint
  3. 3
    moneycontrol25 Aug, 01:25 pm
    Direct mutual fund plans gain ground: Share of retail AUM rises from 21 to 37 - Moneycontrol.com

Who's involved

Institutions and figures named across source coverage.

Corporate
UTI Asset Management Company LimitedMotilal Oswal Asset Management Company LimitedPrakala Wealth

Story context

Category
Business
Sources analysed
3
Last analysed
25 Aug 2026
Key entities
Mutual fundIndian rupeeExpense ratioInvestment managementLakhAssets under managementInvestorCroreAccountingHigh-net-worth individualInstitutional investorFinancial institution