Regular and Direct are two plans of the same mutual fund scheme. They generally share the same portfolio and fund manager, while their expense ratios differ because a Direct Plan excludes distributor commission.
What is a Regular Plan?
A Regular Plan is used when an investor invests through a mutual fund distributor. The AMC may pay trail commission to an empanelled distributor, subject to applicable regulations and the AMC’s terms. Distribution expenses are reflected in the plan’s expenses. Ask for the current commission disclosure that applies to the relevant AMC and scheme.
What is a Direct Plan?
A Direct Plan is for an investment made without involving a distributor. It has a separate NAV and generally a lower expense ratio because distributor commission is not included. The investor is responsible for researching and selecting the scheme and managing the transaction route.
Check current scheme disclosures rather than relying on a general description. Expense ratios, commission arrangements and plan details can vary and change. A lower expense ratio does not by itself establish that a scheme is suitable for you.
What should an investor compare?
- The scheme’s objective, holdings, risk level and time horizon.
- The current expense ratio and other applicable transaction costs.
- The distribution support you want and how it is compensated.
- The distributor’s scheme-wise commission and conflict disclosures.
- Whether you can independently research, select and service the investment.
Ramesh Biswas M’s website describes mutual fund distribution services. Investments facilitated through this distributor are under Regular Plans. Direct Plan transactions are not facilitated through this website. Investors remain free to use an authorized channel for either plan after reviewing the documents and costs.
Before authorizing a transaction, confirm the scheme, plan, option, amount and applicable costs. Ask questions if the plan is not clear.
Official information
- AMFI: Direct Plan and Regular Plan ↗
- AMFI commission disclosure resources ↗
- Read this website’s commission disclosures ↗
Educational information only. It does not consider your individual circumstances, recommend a particular mutual fund scheme or assure returns. Mutual fund investments are subject to market risks; read all scheme-related documents carefully.
For any transaction, verify the current scheme, plan, option, costs, authorization and receiving channel. Do not share passwords, OTPs, PAN or Aadhaar through this site.