Costs, Tax & Regulation
Direct vs Regular Plan
Same portfolio, different costs.
Updated 30 September 2026 · SEBI rules as of 2026
Portfolio
Same
Costs, Tax & RegulationOverview
Every scheme has a direct plan (bought directly, no distributor commission) and a regular plan (via distributor, commission paid from the expense ratio). The portfolio is identical; the direct plan has a lower expense ratio and therefore a higher NAV and return.
| Particular | Details |
|---|---|
| Portfolio | Same |
| Cost difference | Typically ~0.5–1.0% p.a. in equity funds |
| Advice | Regular: distributor; Direct: self or fee-only RIA |
Which to choose
| Situation | Plan |
|---|---|
| You research yourself | Direct |
| You pay a fee-only adviser | Direct |
| You need hand-holding from a distributor | Regular |
Frequently asked questions
Can I switch regular to direct?
Yes, but it is treated as redemption — check exit load and tax.
Mutual fund investments are subject to market risks; read all scheme-related documents carefully. Information is educational and may change with SEBI / tax rules — verify with the AMC, AMFI or SEBI. FinancePortal is not an investment adviser.