What is the difference between direct and regular mutual funds?

Direct plans are bought from the AMC with no distributor commission, so the expense ratio is 0.5–1.5% lower than regular plans — leading to significantly more wealth long-term.

How much extra can I earn with direct plans?

On a ₹10,000/month SIP for 20 years, the difference can be ₹15–30 lakh in maturity value depending on the expense gap.

How do I switch from regular to direct?

You can do it via the AMC website, RTAs (CAMS/KFintech) or apps like Zerodha Coin, Groww and Kuvera. Switching may trigger capital gains tax.

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Direct vs Regular Funds

Compare expense ratios — direct plans save you lakhs in commissions.

Reviewed by Nisha SLast verified 6 Sept 2026RBI-compliantFact-check policy

Monthly SIP₹10,000

₹500₹2L

Period (years)15 yrs

140

Regular Plan Return (%)11.0%

5%20%

Direct Plan Return (%)12.5%

5%20%

Regular Plan Value₹45,88,576

Direct Plan Value₹52,94,147

Extra Wealth (Direct)₹7,05,572

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About this calculator

Direct plans bought from the AMC have lower expense ratios than regular plans, leading to significantly more wealth over the long term.

Formula

Direct plans skip distributor commission, increasing CAGR by 0.5–1.5%.

Frequently Asked Questions

Everything you need to know about the Direct vs Regular Funds.

Results are illustrative estimates for planning. Actual figures depend on bank/AMC terms, taxes and market conditions.