Direct vs Regular Plans: Know the Difference

Every mutual fund scheme in India offers two plans with the same portfolio and fund manager: a Direct Plan and a Regular Plan.

Direct Plan

Bought directly from the AMC or through platforms that offer direct plans. There is no distributor commission, so the expense ratio is lower. You handle research, transactions and servicing yourself.

Regular Plan

Bought through a mutual fund distributor. The AMC pays the distributor a commission, which is included in the scheme’s expense ratio. In return, the distributor helps with documentation, transactions and ongoing servicing.

Why the NAVs differ

Because the expense ratio of a regular plan is higher, its NAV grows slightly slower than the direct plan of the same scheme over time.

Transparency matters: as a distributor, we facilitate regular plans and disclose the commission we receive.

Our approach

Munnetram Capital is an AMFI Registered Mutual Fund Distributor. We do not charge investors any fee; we are paid commission by AMCs on regular plans. Details are on our Commission Disclosure page and in your Consolidated Account Statement.