What is Direct vs Regular Mutual Fund? — Meaning, Definition & Example
Definition
Direct plans have no distributor commission (lower expense ratio, ~0.5-1% cheaper), bought directly from AMC or platforms like MFCentral, Kuvera, Groww. Regular plans include distributor commission, bought through agents/banks. Over long term, direct plans give significantly higher returns.
₹10,000 SIP for 20 years: Direct plan at 12.5% = ₹1.05 crore vs Regular plan at 11.5% = ₹91 lakh. That 1% difference = ₹14 lakh more in direct.
🇮🇳 Direct vs Regular Mutual Fund in Hindi / हिंदी में
डायरेक्ट vs रेगुलर म्यूचुअल फंड — डायरेक्ट प्लान में डिस्ट्रीब्यूटर कमीशन नहीं (कम एक्सपेंस रेशियो)। रेगुलर प्लान में कमीशन शामिल। लंबी अवधि में डायरेक्ट काफी अधिक रिटर्न देता है।
Direct vs Regular MF (Hinglish) — Direct plan mein distributor commission nahi hota, expense ratio kam hota hai (0.5-1% sasta). Long term mein lakhs ka farak padta hai. Direct plans Groww, Kuvera, MFCentral se kharido.