At present , the assets under direct plans stand at Rs 11.97 trillion, whereas those under regular plans stand at Rs 15.89 trillion.
Apart from BSE Star MF, NSE NMF II is another exchange platform which is presently used by MF distributors and other intermediaries for transactions.
had allowed exchange platforms to be used by MF distributors for buying and selling MF units on behalf of their clients. Later, registered investment advisors were also allowed to use the platforms of exchanges.
The market regulator in the past has expressed its interest in growing the asset base under direct plans.
With the view of investors using low-cost options, the regulator in the past has urged the MF industry to increase awareness for direct plans and exchange traded funds.
A direct plan is a mode of investment in which the MF investor bypasses any intermediary and makes a 'direct' investment. Such plans are available at lower expense ratios as the investor is not required to bear commission expenses that MFs pay to distributors.
According to industry participants the move could help the industry deepen penetration in smaller cities -- also known as beyond the top-30 citites (B-30).
"In smaller citites, digital channels can help in onboarding investors. In these parts , we see lowered presence of intermediaries and such a move can make a larger impact," said chief executive of a fund house.