Direct vs Regular Mutual Fund Calculator

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Direct vs Regular plan: what is the difference?

A Direct plan and a Regular plan of the same scheme hold the same stocks and bonds, have the same fund manager and the same risk. The only difference is the expense ratio. A Regular plan's expense ratio includes a trail commission for the distributor, bank or broker who sold it to you, taken out of the fund every day for as long as you hold it. A Direct plan has no commission, so its expense ratio is lower and its NAV grows faster by about the difference, every year.

	Direct plan	Regular plan
Portfolio, fund manager, risk	Same	Same
Expense ratio	Lower: no commission	Higher: includes the distributor's trail commission
NAV	Higher, and grows faster	Lower
Where you buy it	The fund house, MF Central, direct platforms, or through a SEBI-registered investment adviser	Banks, brokers and mutual fund distributors
How to tell	"Direct" in the plan name	"Regular" (or nothing) in the plan name
Advice	Your own research, or a fee-only adviser you pay directly	From the distributor, paid through the commission

The gap looks small in a single year, but it compounds. At 12% a year in the Regular plan and 13% in the Direct plan, ₹10 lakh becomes ₹31.06 lakh against ₹33.95 lakh after 10 years, a difference of ₹2.89 lakh. After 20 years the difference is ₹18.77 lakh.

How the calculator works

When you pick a fund, the calculator reads both plans of it from Foliyo's mutual fund data (Morningstar) and compares them over the same dates:

• Growth of your amount. The amount (₹10 lakh unless you change it) is put into each plan on the start date you choose on the chart: 1, 3 or 5 years ago, or since both plans existed (Max). Each plan's value on every date after that follows its NAV.
• Returns. The 1, 3, 5 and 10-year returns are Morningstar's trailing returns for each plan. The since-launch return is worked out from the two plans' NAVs, from the first date both had one (Direct plans began on 1 January 2013, so older funds are compared from then). Periods longer than a year are annualised (CAGR).
• Expense ratios. Both plans' latest total expense ratios (TER), as the fund last disclosed them, and the gap between them.

Assumptions and limits

• Past returns. The figures show what happened, not what will. The difference between the plans depends mostly on the expense ratio gap, so it is steadier than the returns themselves.
• A lump sum, before tax. The calculator invests one amount on one date. With a SIP each instalment earns the same extra return in the Direct plan, so the gap is similar in percentage terms but smaller in rupees. Tax on selling is the same for both plans and isn't included.
• Growth plans of equity-taxed funds. The search lists Regular Growth plans of equity, aggressive hybrid and equity savings funds that have a Direct plan. Debt and most other hybrid funds aren't covered yet.

Worked example: Invesco India Small Cap Fund

₹10 lakh invested in Invesco India Small Cap Fund on 30 October 2021 was worth ₹23.03 lakh in the Direct plan and ₹21.48 lakh in the Regular plan on 30 October 2026: ₹1.55 lakh more in the Direct plan, from the same portfolio. Over those 5 years the Direct plan returned 18.16% a year and the Regular plan 16.52%. The Direct plan's expense ratio is 0.63% a year against the Regular plan's 1.84% (August 2026): 1.21% a year that goes to the distributor as commission.

Invested when both plans began, on 30 October 2018, the same ₹10 lakh would be ₹51.10 lakh in the Direct plan against ₹45.38 lakh in the Regular plan, ₹5.72 lakh apart: the gap grows the longer you stay.

Period	Regular plan return	Direct plan return	₹10 lakh in Regular	₹10 lakh in Direct
1 year	4.83%	6.15%	₹10.48 L	₹10.61 L
3 years	18.69%	20.29%	₹16.72 L	₹17.40 L
5 years	16.52%	18.16%	₹21.48 L	₹23.03 L
Since Oct 2018	20.80%	22.60%	₹45.38 L	₹51.10 L

Returns to 30 October 2026, annualised for periods over a year. The calculator above shows the latest figures for any fund you pick.

Moving from Regular to Direct

If you already hold the Regular plan, moving to the Direct plan stops the commission from that day on. But a switch is a sale of the Regular plan's units, so it can be taxed (20% on short-term and 12.5% on long-term gains above ₹1.25 lakh a year for equity funds, plus 4% cess) and can carry an exit load on units bought within the last year or so. For most active equity funds held for more than a year, the lower expense ratio wins that cost back within a year or two.

Frequently asked questions

What is the difference between Direct and Regular mutual funds?

They are two plans of the same fund, with the same portfolio and fund manager. A Regular plan is bought through a distributor, bank or broker, and its expense ratio includes the distributor's commission, paid every year you stay invested. A Direct plan is bought from the fund house or a direct platform with no commission, so its expense ratio is lower and it returns more.

How much more does a Direct plan return than a Regular plan?

About the gap between their expense ratios, every year. For actively managed equity funds that is often 0.6% to 1.2% a year; for index funds it is often 0.2% to 0.5%. Over long periods it compounds: at 12% a year against 13%, ₹10 lakh grows to ₹31.06 lakh in the Regular plan and ₹33.95 lakh in the Direct plan in 10 years. Pick a fund in the calculator to see its actual figures.

Why is the NAV of a Direct plan higher than that of the Regular plan?

Both plans of a fund started at the same NAV, but the Regular plan's higher expense ratio is taken out of its NAV every day, so over the years its NAV falls behind. A higher NAV doesn't make the Direct plan more expensive: you get fewer units for the same money, and what you earn depends on how fast the NAV grows, which is faster in the Direct plan.

Is a Direct plan riskier than a Regular plan?

No. Both plans own the same investments in the same proportions, so they rise and fall together. The only difference is the cost. What you don't get with a Direct plan is a distributor's help in choosing funds; you choose yourself, or with a SEBI-registered investment adviser whom you pay a fee instead of a commission.

Is it better to invest in a Direct plan?

On returns, yes: the Direct plan of the same fund returns more over every period, by about the expense ratio gap. The question is whether you need the help a distributor gives. A fee-only SEBI-registered investment adviser recommends Direct plans and charges a disclosed fee, so advice doesn't come out of your returns as a commission.

Should I switch my Regular plan to the Direct plan?

Usually, for active funds you plan to hold for years, but a switch is a sale: it can cost capital gains tax and an exit load. Units held for more than a year often cost little to switch, and the lower expense ratio makes it back within a year or two. The Regular to Direct switch cost calculator works this out for your fund, and the how-to-switch guide covers the steps.

Does the calculator work for SIPs?

It shows a lump sum invested on one date. A SIP earns the same extra return each year in the Direct plan on every instalment, so the gap is about the same in percentage terms but smaller in rupees, because the money goes in gradually.

Where do the numbers come from?

From Foliyo's mutual fund data (Morningstar): each plan's daily NAV, Morningstar's trailing returns and the latest expense ratios. The 1, 3, 5 and 10-year returns are Morningstar's; the since-launch return is worked out from both plans' NAVs. The figures are past performance for information, not investment advice.

Read next

• How to switch from Regular to Direct
• Regular to Direct switch cost calculator
• Direct vs Regular mutual funds: the guide
• Expense ratios explained
• The tax cost of switching
• Find out who earns commission on your funds

Past performance is not a guide to future returns. This page is for information, not investment advice.