The choice between direct and regular mutual fund plans can mean lakhs in difference. Here's everything you need to know.
The Cost Difference
Regular plans include distributor trail commission (0.5-1.5% annually). Direct plans eliminate this cost. Same fund, same manager, same portfolio — just lower cost. See our [Direct vs Regular comparison](/compare/direct-vs-regular-mutual-fund).
The ₹13L Impact
₹10,000 SIP for 20 years: Direct (12% return) = ₹99.9L. Regular (11% return) = ₹86.5L. Difference: ₹13.4L — lost to commissions you didn't need to pay.
How to Switch
1. Visit AMC website or Kuvera/Groww. 2. Submit switch request (regular → direct). 3. Note: Switching triggers redemption + repurchase, so capital gains tax applies. 4. For large holdings with gains, start new SIPs in direct and leave existing regular investments to avoid tax.
Where to Buy Direct Plans
Free platforms: Kuvera (100% free), MF Central (CAMS + KFintech). Low-cost: Groww, Coin by Zerodha. AMC websites: Direct from fund house.
The Distributor Argument
Distributors say they provide advice worth the commission. Reality: Fee-only advisors charge ₹5,000-₹25,000/year for comprehensive planning — far less than 0.5-1.5% annually on a growing portfolio.