MFIC › Direct vs Regular › Expense Ratio: Direct vs Regular
Expense ratio: Direct vs Regular, from AMFI data
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.
Median TER gap (Regular − Direct)
0.70 pp a year
Middle half of schemes
0.39–1.13 pp
Median realised 3Y gap (Direct − Regular)
0.79 pp a year
Schemes compared
1,729 with both TERs
TER: AMFI TER disclosure, as of 2 Oct 2026. Realised gaps: annualised returns of both plans from AMFI NAVs to 2026-10-02, median across 1188 schemes. Medians, so they do not add up exactly.
What the gap means in rupees Illustration
A SIP of ₹25,000 a month for 20 years at an assumed 12% gross return, with expense ratios of 0.68% (Direct) and 1.44% (Regular), the medians in AMFI's data: the Direct path reaches about ₹2.12 crore and the Regular path about ₹1.93 crore, a difference of ₹18.42 lakh. The difference reflects the assumed expense-ratio gap and compounding. Actual outcomes will vary; this is not a guaranteed return or saving.
By category medians of schemes with both plans
| 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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