Start 2026 with Investments: Find Out Which Plan is Right for You

New Year Mutual Fund Investment: As the new year approaches, many people, especially young people, are planning to make new financial decisions. Some resolve to start investing this year, while others plan to reduce expenses and start saving. In this situation, a question repeatedly arises: should you choose a direct plan or a regular plan in mutual funds? Let's find out which plan you should choose.

What is the difference between direct and regular plans?

Both direct and regular mutual funds invest in the same places. The only difference is that in a direct plan, you invest yourself, while in a regular plan, an advisor or distributor is involved. Regular plans are slightly more expensive because their fees are included in your returns. On paper, the direct plan appears to give higher returns.

What is a direct plan?

People start the new year with enthusiasm, but as soon as the market starts to fall, many people panic. Stopping SIPs, frequently changing funds, or investing based on social media advice – all these mistakes cause far more damage than they save. If you are disciplined and can remain calm even in a falling market, then a direct plan might be right for you.

When is an advisor needed?

Not everyone is an expert in investing. Many people simply need someone to guide them at the right time, prevent them from making wrong decisions, and remind them of their goals. In such cases, a good advisor not only suggests funds but also keeps your behavior on the right track. If you are truly receiving this kind of help, then the cost of a regular plan is not wasted.

Which plan is right for you? This new year, ask yourself a question: if the market remains down for several months, will you be able to continue investing without fear? If yes, then a direct plan is the perfect plan for you. If not, a regular plan with proper guidance can be better for you in the long run. The right option is the one that helps you stay invested for years, not just the one that looks good initially.

Disclaimer: India Employment News does not provide any recommendations for buying or selling in the stock market. We publish market-related analysis based on information from market experts and brokerage firms. However, please make market-related decisions only after consulting with certified experts.