What is a Direct plan?
A Direct plan is bought directly from the AMC or a direct platform without distributor commission built into the plan. Direct plans often have lower expense ratios than Regular plans.
Direct vs Regular mutual funds
The same scheme can have Direct and Regular plans. The cost difference can matter over long periods.
What is a Regular plan?
A Regular plan includes distributor commission. Investors may use Regular plans when they receive distributor support or advisory service, but the cost can reduce long-term compounding.
Why returns differ
Direct and Regular plans of the same scheme usually invest in the same portfolio, but different expense ratios can create different NAV growth over time.
Which one should beginners study?
Beginners comparing historical performance should avoid mixing Direct and Regular variants blindly. Compare the same plan type where possible.
Important note
Choosing Direct or Regular depends on whether you need advice, service, and support. PlanSIP does not advise which one you should choose personally.
Educational disclaimer
This guide is for education only. It is not investment advice, tax advice, legal advice, or a recommendation to buy, sell, or hold any mutual fund. Mutual fund investments are subject to market risks. Historical returns do not guarantee future performance.