Nifty 17026.45 (-2.91%)
Sensex 57107.15 (-2.87%)
Nifty Bank 36025.5 (-3.58%)
Nifty IT 34606.1 (-1.97%)
Nifty Financial Services 17614.7 (-3.56%)
Adani Ports 717.15 (-5.94%)
Asian Paints 3143.10 (-0.04%)
Axis Bank 661.75 (-2.67%)
B P C L 376.85 (-5.81%)
Bajaj Auto 3334.60 (-1.68%)
Bajaj Finance 6807.05 (-4.47%)
Bajaj Finserv 16682.55 (-3.95%)
Bharti Airtel 738.75 (-3.45%)
Britannia Inds. 3555.30 (-0.51%)
Cipla 966.70 (7.42%)
Coal India 155.90 (-1.67%)
Divis Lab. 4937.80 (2.88%)
Dr Reddys Labs 4750.90 (3.47%)
Eicher Motors 2433.90 (-3.43%)
Grasim Inds 1690.10 (-4.34%)
H D F C 2741.70 (-4.40%)
HCL Technologies 1110.05 (-1.31%)
HDFC Bank 1489.90 (-2.36%)
HDFC Life Insur. 670.65 (-2.64%)
Hero Motocorp 2529.40 (-2.52%)
Hind. Unilever 2335.10 (-0.59%)
Hindalco Inds. 417.00 (-6.72%)
I O C L 120.95 (-3.74%)
ICICI Bank 722.20 (-3.84%)
IndusInd Bank 901.80 (-5.99%)
Infosys 1691.65 (-1.79%)
ITC 224.00 (-3.16%)
JSW Steel 628.65 (-7.67%)
Kotak Mah. Bank 1964.30 (-3.48%)
Larsen & Toubro 1778.15 (-3.88%)
M & M 853.75 (-4.20%)
Maruti Suzuki 7170.50 (-5.31%)
Nestle India 19222.25 (0.23%)
NTPC 128.85 (-4.70%)
O N G C 147.10 (-5.16%)
Power Grid Corpn 202.00 (-1.10%)
Reliance Industr 2412.60 (-3.22%)
SBI Life Insuran 1130.35 (-2.51%)
Shree Cement 25945.80 (-2.72%)
St Bk of India 470.50 (-4.09%)
Sun Pharma.Inds. 767.30 (-1.99%)
Tata Consumer 766.70 (-5.09%)
Tata Motors 460.20 (-6.61%)
Tata Steel 1112.30 (-5.23%)
TCS 3446.85 (0.03%)
Tech Mahindra 1527.40 (-2.05%)
Titan Company 2292.30 (-4.40%)
UltraTech Cem. 7394.75 (-2.81%)
UPL 703.80 (-3.23%)
Wipro 621.45 (-2.40%)

Direct or Regular Mutual Fund: What Should you Choose?

Direct or Regular Mutual Fund: What Should you Choose?
by 5paisa Research Team 08/11/2021

As an experienced investor, you may have observed an odd option when registering for mutual funds: You must choose between a direct plan and the regular plan. Mutual funds must now categorize the same fund plan into two distinct categories: Direct Plans and Regular Plans, beginning of January 2013.

During the announcement of daily NAVs, SEBI requested all mutual funds to clearly differentiate between regular plans and direct plans. This is the first time the two have been clearly separated. In other words, what's the difference between these two options, and why do we have to choose only one?

Let’s begin with analyzing these investment options so you can better decide what choice is right for you.


Difference Between Direct & Regular Mutual Funds

Direct and Regular plans are the two types of mutual fund investments available to investors. Comparing direct mutual funds with conventional mutual funds reveals three major differences, all of which are interconnected: how you buy, what to buy, what you pay (NAV), and how much it costs over time (total expense ratio).

There are advantages to both strategies. Investors should be aware of how the cost structure differs between the Direct and Regular mutual fund plans and how it impacts their returns before making an educated investment choice.

What are Direct Mutual Funds?

You may complete the KYC and invest directly in the fund of your choosing on their website by providing the appropriate documentation. Once you've made a decision on a strategy, you may begin investing right away. You save money since they don't charge commission or distribution fees this way, which means you can keep more of your earnings.

However, this route has a significant drawback: you'll be forced to do your own study to determine which MF would best serve your objectives before you can make an educated choice. As a result, if you're not familiar with MFs, you may not be able to choose the best one.

What are Regular Mutual Funds?

If you choose the normal plan, an agent/intermediary will do your job on your behalf. In this case, you will get a lot of assistance and someone will walk you through the whole procedure. All you have to do is provide your needs and the required documentation, and the rest of the procedural work will be taken care of for you.

So, you'll not only learn about the best MFs to invest in, but you'll also save time by not having to go through every choice on your own. Additionally, you will be given a representative who will keep you up to speed on the status of your fund and any new funds or investment opportunities in which you may be interested.

What Should you Choose: Direct or Regular?

A mutual fund scheme's Direct and Regular plans are just two variants of the same overall product. Both funds are invested in the same equities and bonds and are managed by the same fund manager.

In contrast to direct funds, which do not charge a commission to the broker as transaction fees or distribution expenses, the AMC charges a commission to brokers for regular funds. This is due to the fact that there are no middlemen when investing via a direct plan, thus all related expenses are removed.

If you compare the NAV of the direct plan to that of a normal plan, the direct plan posts higher numbers. Does it imply that investors would be better off going with a direct plan? If you're thinking about investing, don't only focus on net asset value (NAV).

Some additional things to consider are your knowledge and ability to manage your portfolio, such as if you know enough to select an appropriate fund for your needs. To avoid this, consult with a financial adviser who handles all of this on your behalf at a low fee.

As a result of the adviser monitoring and rebalancing of the portfolio to produce better returns, the total returns in regular funds would be higher despite the increased costs.

Who Should Invest in Direct Mutual Funds?

Direct plans are a good option for investors who want to deal with specific fund houses rather than go via an intermediary. These are best suited for individuals who have the time and inclination to do their own research on mutual funds before investing.

It is the investor's responsibility to handle all aspects of the application and compliance procedure from start to finish. Direct funds may be an excellent option for investors who wish to boost their returns while also cutting their expense ratios.

Conclusion

In this post, we've compared direct mutual fund plans to traditional mutual fund plans, as well as explained the major differences between them. When compared to regular plans, direct plans are less expensive and provide better returns.

In fact, the difference in returns may be significant if you invest for a lengthy period of time. However, Direct mutual fund plans require prior investing expertise and understanding. If you make poor investment choices, you run the risk of losing money.

Open Demat Account

Enter First Name & Last Name
Enter Mobile Number
Enter correct otp
Please enter referal code
Start investing in just 5 mins
Free Demat account, No conditions apply
  • 0%* Brokerage
  • Flat ₹20 per order
Next Article

How to Check the Allotment Status of Fino Payments Bank IPO

How to Check the Allotment Status of Fino Payments Bank IPO
by 5paisa Research Team 08/11/2021

The Rs.1,200.29 crore IPO of Fino Payments Bank, consisting of a fresh issue of Rs.300 crore and an offer for sale (OFS) of Rs.900.29 crore. The IPO was subscribed 2.03X overall at the close of bidding on 02-November. The basis of allotment will be finalized on 09-November and the stock will be listed on 12-November. If you have applied for the Fino Payments Bank IPO, you can check your allotment status online.

You can either check your allotment status on the BSE website or the IPO registrar, KFINTECH Private Limited (formerly Karvy Computershare). Here are the steps.

Checking the allotment status of Fino Payments Bank on BSE website

Visit the BSE link for the IPO allotment by clicking on the link below https://www.bseindia.com/investors/appli_check.aspx

Once you reach the page, here are the steps to follow.

1) Under Issue Type – Select Equity Option
2) Under Issue Name – Select Fino Payments Bank from the drop down box
3) Enter the Application Number exactly as in the acknowledge slip
4) Enter the PAN (10-digit alphanumeric) number
5) Once this is done, you need to click on the Captcha to verity that you are not a robot
6) Finally click on the Search Button.

The allotment status will be displayed on the screen in front of you informing about the number of shares of Fino Payments Bank IPO allotted to you.

Checking the allotment status of Fino Payments Bank on KFINTECH (Registrar to IPO)

Visit the KFINTECH registrar website for IPO status by clicking on the link below:
https://rti.kfintech.com/ipostatus/

Once you click on Recent IPOs, the dropdown will only show the active IPOs, so once the allotment status is finalized, you can select Fino Payments Bank from the drop down box.

A) There are 3 options. You can either Query the allotment status based on PAN, Application Number or DPID-Client ID combination.

B) To Query by PAN, check the appropriate box and follow these steps.

i) Enter the 10-digit PAN number
ii) Enter the 6-digit Captcha Code
iii) Click on Submit button
iv) Allotment status gets displayed on screen

C) To Query by Application Number, check the appropriate box and follow these steps.

i) Select Application Type (ASBA or Non-ASBA)
ii) Enter the Application Number as it is
iii) Enter the 6-digit Captcha Code
iv) Click on Submit button
v) Allotment Status gets displayed on screen

D) To Query by DP-ID, check the appropriate box and follow these steps.

i) Select the depository (NSDL / CDSL)
ii) Enter the DP-ID
iii) Enter the Client-ID
iv) Enter the 6-digit Captcha Code
v) Click on Submit button
vi) Allotment Status gets displayed on screen

Also Read:-

Upcoming IPOs in November 2021

Upcoming IPOs in 2021

Open Demat Account

Enter First Name & Last Name
Enter Mobile Number
Enter correct otp
Please enter referal code
Start investing in just 5 mins
Free Demat account, No conditions apply
  • 0%* Brokerage
  • Flat ₹20 per order
Next Article

How to Check the Allotment Status of Sigachi Industries IPO

How to Check the Allotment Status of Sigachi Industries IPO
by 5paisa Research Team 08/11/2021

The Rs.125.43 crore IPO of Sigachi Industries, consisting entirely of Rs.125.73 crore fresh issue, was subscribed 101.91X overall at the close of bidding on 03 November. The basis of allotment will be finalized on 10 November and the stock will be listed on 15 November. If you have applied for the Sigachi IPO, you can check your allotment status online.


You can either check your allotment status on the BSE website or the IPO registrar, Bigshare Services. Here are the steps.

Checking the allotment status of Sigachi Industries on BSE website

Visit the BSE link for the IPO allotment by clicking on the link below https://www.bseindia.com/investors/appli_check.aspx 

Once you reach the page, here are the steps to follow.

1) Under Issue Type – Select Equity Option
2) Under Issue Name – Select Sigachi Industries from the drop down box
3) Enter the Application Number exactly as in the acknowledge slip
4) Enter the PAN (10-digit alphanumeric) number
5) Once this is done, you need to click on the Captcha to verify that you are not a robot
6) Finally click on the Search Button

The allotment status will be displayed on the screen in front of you informing about the number of shares of Sigachi Industries allotted to you.

Checking the allotment status of Sigachi Industries on  Bigshare Services (Registrar to IPO)

Visit the Bigshare Services registrar website for IPO status by clicking on the link below:
https://ipo1.bigshareonline.com/IPO_Status.html

This dropdown will only show the active IPOs, so once the allotment status is finalized, you can select Sigachi Industries from the drop down box. Once the company is selected from the dropdown box, you have 3 methods to access the allotment status.

A) Firstly, you can access with Application Number / CAF Number. Enter the Application / CAF number and then click on Search Button.

B) Secondly, you can search by Beneficiary ID. From the dropdown box, select the depository name i.e. NSDL or CDSL. In the case of NSDL, enter the DP id and Client id in separate boxes as provided. In case of CDSL, just enter the CDSL client number. After that you can click the Search Button in both cases.

C) Thirdly, you can also search by PAN number. Once you select PAN from the dropdown menu, enter your 10-digit PAN number, which is an alphanumeric code. Once you enter the PAN, click on the Search Button.

The IPO status with number of shares of Sigachi Industries allotted will be displayed on the screen.

Also Read:-

Upcoming IPOs in November 2021

Upcoming IPOs in 2021

Open Demat Account

Enter First Name & Last Name
Enter Mobile Number
Enter correct otp
Please enter referal code
Start investing in just 5 mins
Free Demat account, No conditions apply
  • 0%* Brokerage
  • Flat ₹20 per order
Next Article

Busy IPO Week Ahead - 3 IPOs Open and 2 Listings

by 5paisa Research Team 08/11/2021

The week starting 08th November is likely to be a busy week for the IPO market. There are 3 IPOs that will open during the current week and another 2 IPOs will also list during the week. Let us first look at the IPOs opening this week.
 

You can subscribe to these 3 IPOs this week


1) One97 Communications (Paytm), the holding company that owns and operates the payment platform Paytm, will open its Rs.18,300 crore IPO on 08th November and close for subscription on 10th November.

The IPO will comprise of a fresh issue of Rs.8,300 crore and an offer for sale of Rs.10,000 crore. The Paytm IPO is priced in the band of Rs.2080-Rs.2,150 per share, with minimum market lot of 6 shares.

Paytm just completed its Rs.8,235 crore anchor placement with leading investors last week. Some of the marquee investors who have invested in the anchor placement include Blackrock, Fidelity, Government of Singapore, Abu Dhabi Investment Authority etc.

At Rs.18,300 crore, this will be the biggest Indian IPO; 22% bigger than the Coal India IPO.

2) Sapphire Foods is the largest franchisee of YUM brands in the Indian sub-continent. The company will open its Rs.2,073 crore IPO on 09th November and close on 11th November. It will comprise entirely of an offer for sale (OFS) of Rs.2,073 crore.

The Sapphire Foods IPO is priced in the band of Rs.1,120-Rs.1,180 per share with minimum market lot of 12 shares. 

Sapphire Foods is the franchisee for KFC, Pizza Hut and Taco Bell and operates over 450 stores across India, Sri Lanka and the Maldives.

3) Latent View Analytics, is a pure play data analytics company. It will open its Rs.600 crore IPO on 10th November and close on 12th November. The IPO will comprise of a fresh issue of Rs.474 crore and an offer for sale of Rs.126 crore.

The Latent View Analytics IPO is priced in the band of Rs.190-Rs.197 with minimum market lot of 76 shares.

Latent View is a profit making company focused on the complete value chain of analytics ranging from data design, analytics mapping, analytics consulting and analytics solutions.

 

Two IPOs to list this week


Apart from the string of IPOs opening this week, there will also be a couple of listings.

1) FSN E-Commerce Ventures (Nykaa), the owner and operator of Nykaa omnichannel platform, will list on the BSE and the NSE on Thursday 11th November. The Nykaa IPO closed on 01st November and was subscribed 81.78 times. Against the IPO price of Rs.1,125, the GMP is currently in the range of Rs.700 to Rs.800.

2) Fino Payments Bank will list on Friday 12th November. The IPO of Fino Payments Bank closed on 02nd November and was subscribed 2.03 times.

Also Read:-

Upcoming IPOs in 2021

Upcoming IPOs in November 2021

Open Demat Account

Enter First Name & Last Name
Enter Mobile Number
Enter correct otp
Please enter referal code
Start investing in just 5 mins
Free Demat account, No conditions apply
  • 0%* Brokerage
  • Flat ₹20 per order
Next Article

Paytm IPO - Subscription Day 1

Paytm IPO - Subscription Day 1
by 5paisa Research Team 08/11/2021

The Rs.18,300 crore IPO of One97 Communications (Paytm), consisting of a fresh issue of Rs.8,300 crore and an offer for sale (OFS) of Rs.10,000 crore, saw tepid response on Day-1 of the IPO. As per the combined bid details put out by the BSE at the close of Day-1, One97 Communications (Paytm) IPO was subscribed 0.18X overall, with reasonable demand coming only from the retail segment. The issue closes on 10th November.

As of close of 08th November, out of the 483.89 lakh shares on offer in the IPO, One97 Communications (Paytm) saw bids for 88.24 lakh shares. This implies an overall subscription of 0.18X. The granular break-up of subscriptions was dominated by the retail investors. QIB bids and NII bids are expected to gather momentum on the last day, as is the general trend in the IPO market.
 

Paytm IPO Subscription Day-1
 

Category

Subscription Status

Qualified Institutional Buyers (QIB)

0.06 Times

Non Institutional Investors (NII)

0.02 Times

Retail Individuals

0.78 Times

Employees

N.A.

Overall

0.18 times

 

QIB Portion

The QIB portion of the IPO was subscribed just 0.06 times at the end of Day-1. On 03rd November, One97 Communications (Paytm) did an anchor placement of 383.02 lakh shares at the upper end of the price band of Rs.2,150 to 122 anchor investors raising Rs.8,235 crore. The list of QIB investors included a number of marquee names like Blackrock, GIC Singapore, Canadian Pension Fund, Alkeon Capital, Abu Dhabi Investment Authority (ADIA), Fidelity, Aberdeen, UBS, Aditya Birla Sun Life Mutual Fund; among others.

The QIB portion (net of anchor allocation as explained above) has a quota of 263.94 lakh shares of which it has got bids for 16.79 lakh shares, implying a subscription ratio of 0.06X for QIBs at the close of Day-1. QIB bids typically get bunched on the last day but the heavy demand for the anchor placement forebodes well for the demand for Paytm IPO.

HNI / NII Portion

The HNI portion got subscribed 0.02X (getting applications for 2.65 lakh shares against the quota of 131.97 lakh shares). This is a tepid response on Day-1 but this segment normally sees the maximum response bunched on the last day. That is because, bulk of the funded applications and corporate applications, come in on the last day of the IPO. 

Retail Individuals

The retail portion was subscribed a more reasonable 0.78X at the end of Day-1, showing strong retail appetite. However, it must be noted that retail allocation is just 10% in this IPO. For retail investors; out of the 87.98 lakh shares on offer, valid bids were received for 68.80 lakh shares, which included bids for 56.20 lakh shares at the cut-off price. The IPO is priced in the band of (Rs.2,080-Rs2,150) and will close for subscription on 10th November 2021.

Also Read:- 

List of Upcoming IPOs in November 2021

Paytm IPO - 7 Things to Know Before Applying for IPO

Upcoming IPOs in 2021

Open Demat Account

Enter First Name & Last Name
Enter Mobile Number
Enter correct otp
Please enter referal code
Start investing in just 5 mins
Free Demat account, No conditions apply
  • 0%* Brokerage
  • Flat ₹20 per order
Next Article

Sapphire Foods India IPO - Subscription Day 1

Sapphire Foods India IPO - Subscription Day 1
by 5paisa Research Team 09/11/2021

The Rs.2,073 crore IPO of Sapphire Foods India, consisting entirely of an offer for sale (OFS) of Rs.2,073 crore, saw subdued response on Day-1 of the IPO. As per the combined bid details put out by the BSE at the close of Day-1, Sapphire Foods India IPO was subscribed 0.49X overall, with reasonable demand coming only from the retail segment. The issue closes on 11th November.

As of close of 09th November, out of the 96.63 lakh shares on offer in the IPO, Sapphire Foods India saw bids for 47.11 lakh shares. This implies an overall subscription of 0.49X. The granular break-up of subscriptions was dominated by the retail investors. QIB bids and NII bids are expected to gather momentum on the last day, as is the general trend in the IPO market.
 

Sapphire Foods India IPO Subscription Day-1
 

Category

Subscription Status

Qualified Institutional Buyers (QIB)

0.02 Times

Non Institutional Investors (NII)

0.05 Times

Retail Individuals

2.56 Times

Employees

N.A.

Overall

0.49 times

 

QIB Portion

The QIB portion of the Sapphire Foods IPO was subscribed just 0.02 times at the end of Day-1. On 08th November, Sapphire Foods India did an anchor placement of 79,06,473 shares at the upper end of the price band of Rs.1,180 to 53 anchor investors raising Rs.932.96 crore.

The list of QIB investors included a number of marquee global names like Government of Singapore, MAS, Fidelity, ADIA, Crestwood Capital, HSBC Global, Lion Global, Carmignac Ontario Teacher’s Pension Fund etc. Domestic anchor investors included ICICI Pru Life, Sundaram Mutual Fund, Bajaj Allianz, HDFC MF, Kotak MF among others.

The QIB portion (net of anchor allocation as explained above) has a quota of 52.71 lakh shares of which it has got bids for 0.83 lakh shares, implying a subscription ratio of 0.02X for QIBs at the close of Day-1. QIB bids typically get bunched on the last day but the heavy demand for the anchor placement forebodes well for the Sapphire IPO subscription overall.

HNI / NII Portion

The HNI portion got subscribed 0.05X (getting applications for 1.29 lakh shares against the quota of 26.35 lakh shares). This is a tepid response on Day-1 but this segment normally sees the maximum response bunched on the last day. That is because, bulk of the funded applications and corporate applications, come in on the last day of the IPO. 

Retail Individuals

The retail portion was subscribed an impressive 2.56X at the end of Day-1, showing strong retail appetite. However, it must be noted that retail allocation is just 10% in this IPO. For retail investors; out of the 17.57 lakh shares on offer, valid bids were received for 44.99 lakh shares, which included bids for 36.05 lakh shares at the cut-off price.

The IPO is priced in the band of (Rs.1,120-Rs.1,180) and will close for subscription on 11th November 2021.

Also Read:-

Upcoming IPOs in 2021

Upcoming IPOs in November 2021

Sapphire Foods India IPO - 7 Things to Know

Open Demat Account

Enter First Name & Last Name
Enter Mobile Number
Enter correct otp
Please enter referal code
Start investing in just 5 mins
Free Demat account, No conditions apply
  • 0%* Brokerage
  • Flat ₹20 per order