Direct Plans vs Regular Plans: Which Mutual Fund Option Saves You More?

By Admin

• 30 Sep, 2025

Direct Plans vs Regular Plans: Which Mutual Fund Option Saves You More?

When it comes to investing in mutual funds, one of the most common questions investors face is: Should I choose a Direct Plan or a Regular Plan?

At first glance, both options invest in the same mutual fund scheme. But the difference lies in costs, returns, and how you invest. Let’s break it down so you can make the right choice.

🧐 What Are Direct Plans?

A Direct Plan is when you invest in a mutual fund directly with the fund house, without going through intermediaries like brokers or distributors.

• Expense Ratio: Lower (no commission or distribution fee)

• Returns: Slightly higher due to lower costs

• Who It’s For? Investors who can research and manage funds themselves

🧑‍💼 What Are Regular Plans?

A Regular Plan is when you invest in a mutual fund through an advisor, broker, or distributor.

• Expense Ratio: Higher (includes distributor commission)

• Returns: Slightly lower than direct plans

• Who It’s For? Beginners or investors who need guidance in selecting and monitoring funds

📊 Direct vs Regular: Key Differences

💰 Example: Impact Over 20 Years

• Investment: ₹10,00,000

• Assumed Return: 12% (Regular) vs 13% (Direct)

👉 Regular Plan after 20 years: ~₹96 lakhs
👉 Direct Plan after 20 years: ~₹1.15 crore

📌 Just a 1% difference in returns can create ₹19 lakh extra wealth in the long run!

✅ Which Plan Should You Choose?

• Choose Direct Plans if:
  ✔ You understand mutual funds
  ✔ You can research and track your investments
  ✔ You want to maximize returns by saving on costs

• Choose Regular Plans if:
  ✔ You are new to investing
  ✔ You need handholding from an advisor
  ✔ You prefer convenience over DIY investing

🎯 Key Takeaway

Both Direct and Regular Plans have their place. Direct Plans save more money in the long run, but Regular Plans give you expert guidance.

If you’re confident, go direct. If not, let an advisor help — because choosing the right fund matters more than saving a small fee.

At ProShield Invest, we help investors decide the best route while ensuring their portfolio is aligned with long-term wealth goals.

📞 Need help choosing between Direct and Regular Plans?
📧 Email: contacts@proshieldinvest.in
📞 Phone: 011-69290568
🌐 Website: www.proshieldinvest.in