Regular plans: what the extra cost pays for
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.
A Regular plan is bought through a Mutual Fund Distributor. The fund house pays the distributor trail commission out of the Regular plan's expenses, under SEBI and AMFI rules (SEBI does not allow upfront commission, apart from limited exceptions). You do not pay the distributor separately; the cost is in the expense ratio and so already in the NAV. Your half-yearly Consolidated Account Statement shows, for each scheme, the commission in rupees paid to your distributor for that half-year.
Service depends on the distributor and the arrangement. It can include help with goals and asset allocation, scheme selection, portfolio review and rebalancing, SIP planning, transactions and documentation. None of it guarantees better returns.
- What services do you provide, and how often will my portfolio be reviewed?
- How do you select schemes, and how do you handle underperforming ones?
- Do you review my asset allocation and check overlap between my schemes?
- What happens when a fund manager or a scheme's category changes, and how will you tell me?
- How are you compensated, and how much commission do you receive on my investments?
Goal-based investing; SIP planning and management, with an annual review and step-up; portfolio construction and asset allocation, including risk profiling, fund selection, regular portfolio review, rebalancing and benchmarking against category averages; ELSS and tax-aware investing; insurance as an IRDAI-licensed distributor. Integrato is an AMFI-registered Mutual Fund Distributor (ARN-173155) that distributes Regular plans; it is not a SEBI-registered Investment Adviser and does not charge a fee for investment advice.
- 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.
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