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₹1000 SIP, 10 years, top equity mutual funds calculator: How do regular plans reduce your final corpus vs direct plans?
Mint 58 min ago·29 Oct 2026, 7:01 am
Mutual funds offer two ways to invest: direct plans, which you buy directly from the fund house, and regular plans, which go through a distributor. The key difference is the expense ratio. Regular plans carry a higher fee to pay for the distributor's commission, while direct plans have no such intermediary costs. This difference in charges directly impacts your returns over time.
For a long-term investor, this gap can be significant. A higher expense ratio means a larger portion of your returns is eaten up by fees, reducing the total amount you accumulate. While the difference might seem small on a monthly basis, it compounds over years, potentially leaving you with thousands of rupees less in your final corpus compared to a direct plan.
Investors should review their portfolio to see if they are paying extra for regular plans. Switching to a direct plan can help you keep more of your returns. However, you must ensure you are comfortable managing the investment yourself, as direct plans do not come with the advisory support that a distributor provides.
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