Direct vs Regular Mutual Fund Plans

Every mutual fund scheme in India comes in two variants: a Direct plan and a Regular plan. They hold exactly the same portfolio, but they differ in cost — and therefore in your returns.

Regular plan

A Regular plan is bought through a distributor, agent, or advisor, who earns a commission. That commission is built into a higher expense ratio, which comes out of your returns every year.

Direct plan

A Direct plan is bought straight from the fund house (or a direct platform), with no distributor commission. Its expense ratio is lower, so its NAV grows slightly faster. Over long periods, that gap compounds into a meaningful difference in final value.

Same fund, different returns

Direct and Regular plans of the same scheme have separate NAVs — the Direct NAV is a little higher because it hasn't lost the commission. If you can pick funds yourself, Direct plans are the lower-cost choice. In scheme data, Direct and Regular are distinct schemes with their own NAV series.