Direct vs Regular MF: Which Costs You More?
When you invest in mutual funds, you can go direct (no middleman, lower cost) or regular (through an agent, higher cost). Over time, this small fee difference can mean lakhs less in your final corpus.
That 1% extra expense ratio eats more than your monthly chai budget over 20 years of SIP
Direct funds can put this much more back in your pocket every year
Key Takeaways
Check if your existing SIP is 'Direct' or 'Regular' by logging into your AMC app, CAMS, or KFintech portal right now.
Switch to direct plans via platforms like MF Central, Zerodha Coin, or your AMC's official website — no intermediary needed.
Compare the expense ratios of direct vs regular versions of your fund on SEBI's MFI Explorer before making any new investment.
When you invest in mutual funds, you can go direct (no middleman, lower cost) or regular (through an agent, higher cost). Over time, this small fee difference can mean lakhs less in your final corpus.
Here's what happened: Direct mutual fund plans have no distributor commission, so their expense ratio is 0.5–1.5% lower than regular plans.. Regular plans pay a trail commission to brokers or agents every year — this cost is silently deducted from your returns.. On a ₹10,000/month SIP over 20 years, even a 1% difference in expense ratio can reduce your final corpus by ₹10–15 lakh..
What you should do: Check if your existing SIP is 'Direct' or 'Regular' by logging into your AMC app, CAMS, or KFintech portal right now.. Switch to direct plans via platforms like MF Central, Zerodha Coin, or your AMC's official website — no intermediary needed.. Compare the expense ratios of direct vs regular versions of your fund on SEBI's MFI Explorer before making any new investment..
Switching from Regular to Direct mid-investment triggers a redemption and fresh purchase — check for exit loads and short-term capital gains tax before you switch.
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- [1]“Direct vs regular mutual funds: Meaning, key differences and which one to choose” mint - money · 8 Jun 2026
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