Direct vs Regular Plan Savings
Direct plans have lower expense ratios because they cut out the distributor commission. Even a small difference compounds into lakhs over time.
You save with Direct
₹13.6 L
over 20 years
₹
Investment Duration
12% p.a.
Expense Ratios
%
%
Difference 1.20% leaked to commissions
You save with Direct Plan
₹13.6 L
That's 17% more than Regular plan · over 20 years
Direct
₹92.2 L
Effective: 11.4% p.a.
Regular
₹78.6 L
Effective: 10.2% p.a.
Growth Comparison
Direct
Regular
Invested
Total Invested
₹24.0 L
Direct Gain
₹68.2 L
Commission Lost
₹13.6 L
Why does this matter?
- Regular plans pay 0.5–1.5% commission to distributors from YOUR returns
- A 1.2% difference compounds into ₹13.6 L over 20 years
- Direct plans are identical funds — same manager, same portfolio, same risk
- You can switch from Regular to Direct anytime (may trigger capital gains tax)