Srinagar, June 30 -- In this scenario, there has been a surge in direct mutual fund plans driven by tech-savvy, digital-first investors who use fintech platforms extensively. Direct equity AUM rose to 30% by March 2025 from 20% in March 2020, which signals a paradigm shift towards self-directed investment spearheaded by the younger investor crowd. The share of Direct SIP AUM rose to 23.6% in March 2024, dominated by individuals aged 18-34 years, which highlights a major shift in investor profile.Here, we tend to explore what direct plans are, why they are popular amongst the younger generation, their benefits and misconceptions and challenges that you need to be aware of before adopting the process.

As the name suggests, when you purchas...