Direct and Regular plans
The same fund sold two ways, directly or through a distributor, and what the difference in cost does over time.
This explains how things work. It is not advice about what to buy, sell or hold.
Two plans, one portfolio
Since 1 January 2013 every scheme has offered a Direct plan beside its Regular plan. Both hold exactly the same investments, chosen by the same fund manager. What differs is how the plan is sold and, because of that, what it costs.
Where the difference in cost goes
A Regular plan is bought through a distributor, such as an agent, a broker or a bank, and the fund house pays that distributor a commission out of the plan. That commission is part of the Regular plan's Expense ratio (TER). A Direct plan is bought from the fund house itself, pays no commission, and so has a lower expense ratio.
Two NAVs
Each plan has its own NAV (net asset value). Because less is taken from the Direct plan each day, its NAV grows a little faster and stands above the Regular plan's. The gap is small in any one year, but it compounds: the longer the money stays, the wider the difference in what the same purchase is worth.
What a distributor provides
The commission pays for a service. A distributor can help choose schemes, handle forms and keep track of investments. A Direct plan is bought without that help, through the fund house's own website or office, or a platform that sells Direct plans.
On this site
The public pages list Direct plans. On the portfolio page, a Regular-plan holding can be entered as its Direct version; its value there then reads higher than the statement shows, by the difference in cost.
Sources
- SEBI www.sebi.gov.in/sebi_data/faqfiles/sep-2024/1727242783639.pdf checked 02 Oct 2026
- AMFI www.amfiindia.com/investor/knowledge-center-info?zoneName=DirectPlan checked 02 Oct 2026
- AMFI www.mutualfundssahihai.com/en/what-direct-plan-regular-plan checked 02 Oct 2026
- Zerodha Varsity zerodha.com/varsity/chapter/mutual-fund-expense-ratio-direct-and-regular-plans/ checked 02 Oct 2026