Direct vs Regular Mutual Fund Calculator
Same fund, same shares, different cost. See the real yearly gap between the direct and regular plan of your fund, and what it adds up to on your SIP.
Across 395 equity mutual funds, the regular plan returned a median 1.28% a year less than the direct plan of the same fund over the three years to September 2026, measured from AMFI's NAVs; the gap was widest in Multi Cap funds (1.36% a year). Same fund, same shares: the difference is the commission and costs of the regular plan.
Every mutual fund comes in two versions: a direct plan you buy yourself and a regular plan sold through a distributor, who is paid a commission out of your money every year. Pick your fund to see how much less its regular plan has actually returned, from AMFI's daily NAVs, and what that gap costs on your SIP or lump sum.
The words on this page, explained simply
New to this? Here is what each term means, in plain English.
- Mutual fund
- A pot of money pooled from many people and invested by a professional fund manager in shares, bonds or both. You own units of the pot, and their value rises and falls with what it holds.
- Direct plan
- The version of a fund you buy straight from the fund house or a direct-plan app. No distributor is paid, so its yearly cost is lower and its returns higher.
- Regular plan
- The version of the same fund sold through a bank, agent or distributor. Their commission is taken from the fund every year, so it returns less than the direct plan.
- Expense ratio (TER)
- The yearly cost of running a fund, taken out of its value a little every day. 1% means ₹1,000 a year on ₹1 lakh. Regular plans have a higher expense ratio because it includes the commission.
- Distributor commission
- What the person or company that sold you a regular plan earns, as a share of your money every year for as long as you stay invested.
- Growth and IDCW options
- Growth: profits stay invested and the NAV keeps rising. IDCW (income distribution): the fund pays out part of your money from time to time and the NAV drops by that amount.
- Exit load
- A fee some funds charge if you sell within a set time, often 1% within a year of buying.
A mutual fund pools money from many people and invests it in shares or bonds. Every fund sells two versions of itself. The direct plan is what you get when you invest straight with the fund house or through a direct-plan app. The regular plan is what you get through a bank, agent or distributor, who is paid a commission every year, taken from the fund's value. Both own exactly the same shares; the regular plan simply charges more, so its returns are lower.
The calculator reads the difference straight from AMFI's published NAVs (the price of one unit of each plan) rather than from fee tables: it compares what the direct and regular plans of your fund actually returned over the last one, three and five years. Then it shows what that yearly gap does to your own SIP or lump sum over the years you plan to stay invested.
Why a small yearly gap becomes a large sum
A gap of 1% a year sounds small. But it is taken every year from your whole balance, including all the growth so far, so it compounds against you. On ₹10,000 a month for 20 years at 12% a year, the direct plan grows to about ₹92.0 lakh; at 11% a year, the regular plan grows to about ₹81.6 lakh. The ₹10.4 lakh difference is what the extra cost added up to.
That is why the gap matters most for long SIPs, large amounts and equity funds, where the commission is highest.
Should you switch from regular to direct?
If you pick your own funds and do not need a distributor's advice, the direct plan of the same fund is simply the cheaper way to own it. If an adviser helps you choose and stay invested, the regular plan is how many of them are paid; a fee-only adviser who recommends direct plans is the other route.
Switching is treated as selling the regular plan and buying the direct one. Profits on the sale can be taxed (for equity funds, 20% if held a year or less, and 12.5% on long-term gains above ₹1.25 lakh a year), and the fund may charge an exit load on recent purchases. Many people stop new SIPs in the regular plan, start them in direct, and move the old units only once they are long-term and within the yearly tax-free limit.
How the gap is measured
For every fund that has one direct and one regular Growth plan, Strota takes the last NAV of each month from AMFI and works out each plan's yearly compounded return over the last 1, 3 and 5 years to the same month-end. The gap is the direct return minus the regular return. Because it comes from actual NAVs, it includes everything the regular plan really costs, not just the published expense ratio.
The calculator applies that gap to the return you expect, so the rupee figure is an estimate; the fund's past returns are not a forecast. IDCW (dividend) options are left out, because their NAV drops at each payout.
Key takeaways
- Direct and regular plans of a fund hold the same shares; the regular plan costs more each year.
- The difference is mostly the distributor's commission, taken from your fund's value every year.
- A 1% yearly gap on a 20-year SIP of ₹10,000 a month costs about ₹10.4 lakh at 12% returns.
- Switching counts as a sale: check tax and exit load before moving old units.
Frequently asked questions
What is the difference between direct and regular mutual fund plans?
Both are the same fund holding the same shares. A regular plan is sold through a distributor and pays them a commission every year from the fund's value, so its expense ratio is higher and its returns lower. A direct plan has no distributor commission.
How much more does a regular plan cost?
It varies by fund and category. Pick your fund in the calculator to see the actual gap between its direct and regular plans over 1, 3 and 5 years, measured from AMFI's NAVs; the table on this page shows the typical gap in each category.
Why is the NAV of a direct plan higher?
Because less is taken out of it in costs every day. Both plans started at the same NAV; the direct plan's lower costs leave more money invested, so over time its NAV pulls ahead.
How do I know if my mutual fund is direct or regular?
Your account statement (CAS) and the fund's name say Direct Plan or Regular Plan. If it does not say Direct, it is regular.
Is switching from regular to direct taxed?
Yes. Moving from the regular to the direct plan is treated as selling one and buying the other, so capital gains tax applies to any profit, and an exit load may apply to recent purchases. Waiting until units are over a year old, and using the ₹1.25 lakh yearly tax-free limit on long-term gains, keeps the cost down.