Employee money guide

Direct vs Regular Mutual Funds

Learn the difference between direct and regular mutual fund plans, expense ratios, distributors, and investor support.

Direct Answer

Direct plans are bought directly from the AMC and usually have lower expense ratios. Regular plans include distributor commission and may come with distributor support.

Key Takeaways

Direct plans usually cost less.
Regular plans include distributor commission.
The right choice depends on support needs and investor behaviour.

Cost difference

Regular plans have higher expense ratios because distributor commission is included. Over long periods, cost differences can matter.

Support difference

Some employees need help with goal selection, behaviour, tax, and reviews. Cost should be compared with the value of support received.

Next Actions

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Mutual funds hub

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FAQs

Do direct plans guarantee better returns?

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No. Direct plans have lower costs, but returns still depend on the same underlying scheme and market performance.

Reviewed by the Saventh Financial Literacy Team. Educational information for Indian employees — not personalised advice. Mutual fund investments are subject to market risk. Saventh AMFI ARN 324457.

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Saventh Investment is an AMFI Registered Mutual Fund Distributor.

Disclaimer: Mutual fund investments are subject to market risks. Please read the scheme information and other related documents carefully before investing. Past performance is not indicative of future returns. Please consider your specific investment requirements before choosing a fund, or designing a portfolio that suits your needs.

Saventh Investment makes no warranties or representations, express or implied, on products offered through the platform of Saventh Investment. It accepts no liability for any damages or losses, however, caused, in connection with the use of, or on the reliance of its product or related services. Terms and conditions of the website are applicable.
Investments in Securities markets are subject to market risks, read all the related documents carefully before investing.

AMFI Registered
ARN - 324457