Mutual Funds
Regular vs Direct: the rupee drag
Same fund, same manager, same portfolio. A Regular plan just carries a higher expense ratio than the Direct plan. It looks tiny each year. Here is what that difference works out to in rupees over time, assuming a return you choose. This is an illustration, not a forecast or a recommendation.
Year by year
The Direct and Regular corpus each year, and the rupee drag between them, under the assumed return above.
| Year | Invested | Direct | Regular | Rupee drag | Drag % of Direct |
|---|---|---|---|---|---|
| 1 | ₹60,000 | ₹63,872 | ₹63,524 | ₹348 | 0.5% |
| 5 | ₹3L | ₹4.1L | ₹4L | ₹11,008 | 2.7% |
| 10 | ₹6L | ₹11.3L | ₹10.6L | ₹64,424 | 5.7% |
| 15 | ₹9L | ₹24.1L | ₹21.9L | ₹2.2L | 9.0% |
| 20 | ₹12L | ₹46.7L | ₹40.9L | ₹5.8L | 12.5% |
These figures assume a fixed annual return on the same fund; real returns vary and can be negative, so treat them as a what-if, not a promise. When you want to act, browse the fund catalog. New to the idea? Read Direct vs Regular mutual funds explained.
Educational illustration only, not investment advice. Assumed returns are assumptions, not guarantees; actual returns vary and can be negative. Expense ratios differ per fund, so check the scheme document. The gap shown is only the effect of the expense-ratio difference between a fund's Direct and Regular plans, assuming both hold the identical portfolio.
Mutual Fund investments are subject to market risks, read all scheme related documents carefully. Past performance is not indicative of future returns.