Direct and regular plans
Two versions of the same mutual fund: direct plans have no distributor commission, so a lower expense ratio.
A regular plan pays a commission to the distributor every year out of the fund's returns; a direct plan, bought from the fund house or a direct platform, doesn't. Same fund, same manager, different costs.
The gap is often 0.5% to 1% a year, which adds up to lakhs over decades.
Example
₹10,000 a month for 20 years at 12% before costs: a 1% higher expense ratio costs roughly ₹10 lakh.
Direct vs Regular Plan Calculator
What a regular mutual fund plan's commission costs you over the years, compared with the direct plan.
Related terms
Rules as of tax year 2026-27. Written by the Welthr team; last reviewed on . Not financial advice.