Mutual Funds & ETFs

What is the difference between a regular plan and a direct plan?

The difference between a regular plan and a direct plan of a mutual fund is the distribution commission: a regular plan pays a commission to an intermediary, while a direct plan does not, giving it a lower expense ratio. Both invest in the same portfolio, so the only structural difference is cost, which leaves the direct plan with a higher net return for the same performance. For example, a 0.7 percent commission saved each year compounds meaningfully over a long horizon. Knowing which plan you actually hold is a basic step in understanding what you pay. Verify your plan type in your statement.

Crypto investments are subject to market risk and volatility. Past performance is not indicative of future returns. This is general information, not investment advice — consider your own circumstances or consult a qualified adviser before investing.