These are just two options for the same mutual fund investment. They are managed by the same fund manager. The portfolio is invested in the same bonds and stocks. So what is Direct vs Regular Funds? The only difference between them is that, in case of a Regular fund, the Mutual Fund Agent or broker gets a commission from the mutual fund house. This commission may be called Distribution Fee. On the other hand, in the case of a Direct plan, no such fees/commission is paid.

On one hand, the Regular mutual fund plans are quite well known to investors, direct mutual fund plans have started becoming popular recently.

What is a Direct Plan

Direct vs Regular Funds

What is Direct Plan of Mutual Fund: WealthBucket

Direct Mutual Funds were introduced in January 2013 By Securities and Exchange Board of India (SEBI). Thereby, all Asset Management Companies (AMCs) have to provide an option to invest in mutual fund schemes directly. No Mutual Fund Agent, Mutual Fund Broker or Mutual Fund Distributor would be involved. That is the case with regular mutual fund plans, on the contrary.

Direct vs Regular Funds

Providing below a table to better understand the difference between these types of Mutual Funds investments. On the basis of various parameters:

ParametersDirect planRegular Plan
Investment AdviceNot AvailableAvailable
Market researchDone by SelfDone by Mutual Fund Distributor or Mutual Fund Agent

Benefits of Direct Plans

If you wish to invest in mutual funds. Dealing directly with the fund without an intermediary. Fund Managers reduce their expense ratios or commissions. Thereby generating more returns. The removal of commission increases the returns over the long-term.

In the case of a direct plan, investors are advised to do the market research themselves. To select the best mutual fund schemes. The investors can analyze by different investment options, reach out to mutual fund websites and blogs to know more about the appropriate mutual fund schemes.

Direct plans work best for those investors who want to increase their returns by investing directly through the fund. They have the confidence that they can manage the documentation on their own. While the process may seem a little complex at the initial stages, they would get the knowledge while investing in further schemes.

Benefits of Regular Plans

Expert professional advice can make a huge difference in returns. If you invest in a regular mutual fund, your Mutual Fund Agent can help you to understand and manage your investments more effectively.

The performance of different mutual funds needs to be evaluated in different terms. A liquid fund may be evaluated based on past performance only. While Best Equity Mutual Fund is selected based on various points. These may be NAV, Annualised Returns, AUM, and Exit Load, etc. A good mutual fund agent can help you select the fund that could lead to a difference of as much as 4 to 5% in return over a period of time.

A good financial agent would help you review your portfolio and rebalance the same. You can also save your time and effort required to keep a regular track.

Final Notes on Direct vs Regular Funds

Direct vs Regular Funds

Which is Better: WealthBucket

Direct Plans in Mutual Funds are appropriate for those who want to increase their mutual fund returns by investing directly through AMC. And want to do documentation on their own. The process may look a little complicated in the initial stages. However, it becomes easy while investing in subsequent schemes.

If you are an investor of diligence. Have deep knowledge. In other words, you can pick and track your mutual funds. Then the direct plan is better. The mutual fund advisor provides no extra value to you and does not deserve their fee. For most people, however, relying on recommendations by a professional expert is the only option. The advice, after outweighing the thousands of options, from Mutual Fund Agent, is a requirement.

If that person or entity knows what they are doing. Are not getting influenced by other factors like the commission they earn. You will get a good service, for sure. And potentially earn more on your investments than what you could have done on your own. In that situation, the advisor has earned their fee and investing in a regular plan would be better for you.

To conclude, only around 12% of investors invest in direct mutual funds, as per various studies and reports. It may be because, most of us, from the general investors, do not have the expertise. We cannot devote so much time and effort to study. However, it is good to understand these two terms. Moreover, the debate of Direct vs Regular Funds will never end.


You should always choose your investments based on your goals, risk appetite, and investment duration. And you should always choose the mode of investment, Direct vs Regular Funds, based on your know-how, time and efforts.

With so many options of mutual fund plans. So many conditions to analyze. Finalizing the fund in which you put your money is an intimidating task. That is why it is advisable that you take the help of professionals. That is why it is advisable that you let WealthBucket assist you. Let us help you out in short-listing and personalizing your investment.

Our services relate to but are not limited to, Equity Mutual FundDebt mutual fund, Large Cap mutual fund or Multi-Cap mutual fund.

Do call us at +91 8750005655. Or you can mail at


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