Mutual Funds

The Direct vs Regular gap, made visible

A “regular” plan carries a higher expense ratio than the Direct plan of the same fund, every year. It looks tiny. Over decades it quietly compounds into a fortune you never see.

Expense ratio: The yearly fee a fund charges to manage your money, taken daily from the NAV so you never see a bill. A small gap between plans compounds into a big one over time.

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Extra cost of the Regular plan₹5.8Lover 20 years. That's 12.5% of your direct-plan corpus, gone.

Direct plan₹46.7L

Regular plan₹40.9L

You invested₹12L

DirectRegularInvested

Expense ratio

The annual fee a fund charges, as a % of your investment, taken daily from the NAV, so you never see a bill. Direct plans skip the distribution cost, so their expense ratio is lower.

Direct vs Regular

Same fund, same manager, same portfolio. A Regular plan just carries a higher expense ratio than the Direct plan. Buying the Direct plan of the exact same fund keeps that money invested.

Exit load

A charge (often ~1%) if you redeem within a set period, e.g. one year. It discourages early withdrawal; hold past the exit-load window and it doesn't apply.

Educational illustration only, not investment advice. Returns are assumptions, not guarantees. Actual fund returns vary. Expense ratios differ per fund, so check the scheme document.
Mutual Fund investments are subject to market risks, read all scheme related documents carefully. Past performance is not indicative of future returns.