MFIC › Direct vs Regular
Direct or Regular: what's right for you?
A Direct plan costs a little less. A Regular plan comes with a distributor who helps you choose, review and stay on course. Here is how to weigh the two.
Calculate your own difference
Two minutes: the cost in rupees for your SIP or lump sum, what it pays for, and five quick questions on which approach suits you.
In short
- Same fund, two prices. A scheme's Direct and Regular plans hold the same portfolio. The Regular plan costs typically about 0.70% a year more (AMFI data), because it pays a distributor.
- Over time it adds up. On a ₹25,000 monthly SIP for 20 years, that is roughly ₹18.42 lakh (illustration at 12% a year before costs).
- What it pays for. A distributor or adviser helps with the decisions that matter most: a plan for your goals, choosing and reviewing funds, staying invested when markets fall, rebalancing, and paperwork.
- So the real question is whether you will do those things well yourself. If yes, a Direct plan saves money. If not, support can be worth more than it costs, though no one can guarantee that.
A plan for your goalsAsset mix and SIP amounts matched to what you are saving for.
Choosing the right fundsPicking schemes, and checking each still deserves its place.
Staying invested in fallsSomeone to talk to before a panic sale.
Rebalancing on timeBringing the mix back to plan when markets move it.
Paperwork and tax recordsTransactions, nominee and KYC updates, capital-gains statements.
Your time backResearch and monitoring handled for you.
See the cost gap by fund category AMFI data
| Category | Schemes | Regular TER | Direct TER | TER gap | Realised 3Y gap | Realised 5Y gap |
|---|---|---|---|---|---|---|
| Aggressive Hybrid | 30 | 2.21% | 1.08% | 1.17 pp | 1.29 pp | 1.28 pp |
| Arbitrage | 38 | 2.08% | 1.44% | 0.69 pp | 0.73 pp | 0.73 pp |
| Balanced Advantage | 37 | 2.31% | 1.04% | 1.26 pp | 1.39 pp | 1.33 pp |
| Balanced Hybrid | 4 | 2.40% | 1.04% | 1.36 pp | 1.64 pp | n/a |
| Banking & PSU | 20 | 0.71% | 0.36% | 0.34 pp | 0.36 pp | 0.39 pp |
| Children's | 12 | 2.34% | 1.42% | 0.83 pp | 0.89 pp | 0.86 pp |
| Closed-ended Debt | 1 | 0.20% | 0.18% | 0.02 pp | 0.01 pp | -0.02 pp |
| Closed-ended ELSS | 5 | 1.41% | 1.24% | 0.20 pp | 0.37 pp | 0.40 pp |
| Conservative Hybrid | 18 | 1.83% | 0.99% | 0.78 pp | 0.87 pp | 0.82 pp |
| Contra | 4 | 1.94% | 0.84% | 1.16 pp | 1.26 pp | 1.28 pp |
| Corporate Bond | 21 | 0.68% | 0.34% | 0.33 pp | 0.36 pp | 0.36 pp |
| Credit Risk | 13 | 1.51% | 0.80% | 0.78 pp | 0.83 pp | 0.82 pp |
| Debt Index Fund | 106 | 0.38% | 0.20% | 0.20 pp | 0.20 pp | 0.23 pp |
| Debt Sectoral | 1 | 0.69% | 0.52% | 0.17 pp | n/a | n/a |
| Dividend Yield | 12 | 2.36% | 1.19% | 1.16 pp | 1.26 pp | 1.17 pp |
| Domestic FoF | 151 | 0.59% | 0.17% | 0.40 pp | 0.46 pp | 0.47 pp |
| Dynamic Bond | 22 | 1.30% | 0.52% | 0.71 pp | 0.79 pp | 0.82 pp |
| ELSS | 38 | 2.16% | 1.10% | 1.11 pp | 1.23 pp | 1.25 pp |
| Equity Savings | 24 | 2.15% | 1.23% | 1.00 pp | 1.02 pp | 1.01 pp |
| Fixed Maturity Plan | 24 | 0.27% | 0.13% | 0.15 pp | 0.16 pp | 0.20 pp |
| Flexi Cap | 46 | 2.19% | 0.91% | 1.23 pp | 1.32 pp | 1.15 pp |
| Floater | 12 | 0.64% | 0.28% | 0.35 pp | 0.38 pp | 0.40 pp |
| Focused | 28 | 2.21% | 1.06% | 1.13 pp | 1.30 pp | 1.37 pp |
| Gilt | 23 | 1.18% | 0.50% | 0.64 pp | 0.68 pp | 0.67 pp |
| Gilt 10Y Constant | 5 | 0.51% | 0.31% | 0.22 pp | 0.24 pp | 0.21 pp |
| Index Fund | 260 | 1.09% | 0.46% | 0.56 pp | 0.59 pp | 0.52 pp |
| International FoF | 49 | 1.39% | 0.59% | 0.69 pp | 0.94 pp | 0.93 pp |
| Interval Fund | 1 | 0.17% | 0.13% | 0.04 pp | 0.05 pp | 0.08 pp |
| Large & Mid Cap | 36 | 2.30% | 1.08% | 1.17 pp | 1.21 pp | 1.24 pp |
| Large Cap | 34 | 2.22% | 1.07% | 1.08 pp | 1.21 pp | 1.10 pp |
| Liquid | 40 | 0.25% | 0.13% | 0.10 pp | 0.11 pp | 0.11 pp |
| Long Duration | 11 | 0.78% | 0.32% | 0.45 pp | 0.43 pp | 0.45 pp |
| Medium Duration | 13 | 1.32% | 0.70% | 0.63 pp | 0.71 pp | 0.71 pp |
| Medium to Long Duration | 13 | 1.36% | 0.69% | 0.56 pp | 0.74 pp | 0.74 pp |
| Mid Cap | 33 | 2.03% | 0.94% | 1.10 pp | 1.22 pp | 1.23 pp |
| Money Market | 26 | 0.40% | 0.17% | 0.23 pp | 0.25 pp | 0.24 pp |
| Multi Asset Allocation | 37 | 2.16% | 0.85% | 1.31 pp | 1.37 pp | 1.30 pp |
| Multi Cap | 32 | 2.19% | 0.96% | 1.32 pp | 1.38 pp | 1.38 pp |
| Overnight | 39 | 0.18% | 0.10% | 0.07 pp | 0.09 pp | 0.09 pp |
| Retirement | 29 | 2.18% | 1.16% | 1.13 pp | 1.22 pp | 1.25 pp |
| Sectoral/Thematic | 252 | 2.38% | 1.15% | 1.26 pp | 1.31 pp | 1.24 pp |
| Short Duration | 23 | 0.99% | 0.37% | 0.62 pp | 0.66 pp | 0.69 pp |
| Small Cap | 35 | 2.09% | 0.90% | 1.20 pp | 1.34 pp | 1.34 pp |
| Ultra Short Duration | 26 | 0.82% | 0.31% | 0.54 pp | 0.58 pp | 0.57 pp |
| Ultra Short to Short Term | 25 | 0.86% | 0.35% | 0.48 pp | 0.57 pp | 0.56 pp |
| Value | 23 | 2.31% | 1.28% | 1.13 pp | 1.21 pp | 1.12 pp |
The realised gap is measured from both plans' actual NAVs, so it reflects the full difference in expenses over the period, including past TER levels. Source: AMFI. Recent TER changes →
When Direct may make sense
- You understand mutual funds well and can analyse schemes
- You have time to research and monitor
- You can rebalance and stay disciplined in falls
- You understand the tax implications
- You are comfortable deciding independently
When professional support may make sense
- You have limited time or find fund selection difficult
- You want structured reviews and help with asset allocation
- You find it hard to stay invested in falls
- You have several goals or a complex portfolio
- You want ongoing service
Support does not guarantee better returns.
Questions
- What is the difference between a Direct and a Regular plan?
- Both plans of a scheme hold the same portfolio and have the same fund manager. A Regular plan is bought through a distributor and its expense ratio includes the distributor's remuneration; a Direct plan is bought directly from the fund house or through a platform and has a lower expense ratio.
- How much more does a Regular plan cost?
- In AMFI's TER disclosure as of 2 Oct 2026, the median Regular plan costs 0.70 percentage points a year more than the Direct plan of the same scheme, across 1729 schemes (the middle half lie between 0.39 and 1.13 pp).
- Is a Direct plan always better?
- A Direct plan costs less, but the investor takes on research, selection, monitoring, rebalancing, tax records and staying invested through falls. Whether the cost of support is worth it depends on the investor; no form of support guarantees better returns.
- Is a mutual fund distributor the same as an investment adviser?
- No. A Mutual Fund Distributor is registered with AMFI and is paid commission by fund houses from Regular-plan expenses. A SEBI-registered Investment Adviser charges the client a fee and usually recommends Direct plans. Integrato is an AMFI-registered Mutual Fund Distributor (ARN-173155), not a SEBI-registered Investment Adviser.
- How do I see what my distributor is paid?
- Your half-yearly Consolidated Account Statement (CAS) shows, for each scheme, the commission in rupees paid to your distributor for that half-year. You can also ask the distributor directly.
Want to understand how Integrato can support your portfolio?
Integrato is an AMFI-registered Mutual Fund Distributor (ARN-173155). One-to-one planning sessions are paid, from ₹2,999.
Data & disclosure. TER from AMFI's TER disclosure and returns from AMFI NAVs, calculated by MFIC; updated 2 Oct 2026. Illustrations use assumed returns and are not forecasts; expense ratios change; service varies by distributor; tax rules may change. Mutual fund investments are subject to market risks; read all scheme-related documents carefully. Past performance is not indicative of future performance. Educational information, not investment advice. Integrato Financial Services Pvt. Ltd. is an AMFI-registered Mutual Fund Distributor (ARN-173155).
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