Direct vs Regular Mutual Fund
Enter your SIP to see what regular-plan commissions cost versus direct plans.
Runs entirely in your browser — your numbers never leave this page.
How it works
Direct and regular plans hold the same portfolio — the only difference is the commission:
- TER gap: regular plans charge ~0.8–1.2% more annually — that's the distributor's commission, deducted daily from your NAV.
- Compounding cruelty: 1% less return for 20 years = ~16% smaller corpus. For 30 years, ~24%.
- Same fund, same manager: you're not buying worse performance — you're paying a middleman for the same performance.
- When regular makes sense: if you genuinely need an advisor's guidance and would otherwise not invest at all.
- Switching: you can switch regular → direct anytime; it's treated as redemption + purchase (exit loads and capital gains may apply).
- How to buy direct: AMC websites, MF Central, or direct-plan platforms — never through a commission agent.
Frequently asked questions
What is the difference between direct and regular mutual funds?
Same portfolio and manager — regular plans charge ~1% extra TER as distributor commission; direct plans skip it.
How much do I lose in a regular plan?
About 16% of corpus over 20 years (at 1% TER gap), ~24% over 30 years. This calculator shows your number.
Are direct plans riskier?
No — identical portfolios. The only difference is cost.
Can I switch from regular to direct?
Yes, anytime. It counts as redemption + fresh purchase — exit loads and capital-gains tax may apply.
Is an advisor worth 1%?
Only if their guidance genuinely improves your behavior (asset allocation, staying invested). The fee itself is a guaranteed drag.
How do I buy direct plans?
AMC websites, MF Central, or direct-plan platforms. If someone "helps" you invest, check whether it's regular.
Do direct plans have lower minimums?
Same minimums — the difference is purely the expense ratio.
What about direct stocks vs mutual funds?
Different question — this is about plan types within mutual funds, not stocks vs funds.
Does the TER gap vary by fund?
Yes — 0.8–1.2% for active equity, smaller for index funds (~0.1–0.3%), larger for some hybrid funds.
Should existing SIPs be switched?
Usually yes — but stagger switches across financial years to spread the capital-gains tax.