Comparison guide
Direct vs Regular Mutual Funds — The Cost of Distribution
Direct plans cut out the distributor's trail commission — and that single decision is worth several lakh rupees over a 25-year horizon.
// the ter difference
Regular plans embed the distributor commission inside the TER (typically 0.5–1.5%). Direct plans don't. On the same ₹10,000 monthly SIP over 25 years at 12% gross, direct vs regular splits ₹2.0+ crore vs ₹1.7+ crore terminal corpus — a ~₹30 lakh gap.
// where you should buy direct
AMC websites, MF Utility, Kuvera, Groww direct, Coin by Zerodha, ET Money. All let you buy direct plans without any distributor markup.
// switching from regular to direct
Each switch is a redemption + fresh purchase, so it triggers capital gains tax and a fresh exit-load clock for ELSS. Plan transitions tax-efficiently — usually after the 1-year (equity) or 3-year (debt legacy) holding period.
// frequently asked questions
Yes. Direct plan NAVs are higher than regular plan NAVs because lower expenses leave more value inside the unit.