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Direct vs Regular Mutual Funds: The 1% That Costs Lakhs

Direct plans skip distributor commission and compound faster. Here is exactly how much the gap costs over 10–20 years.

By LetsInvest Research Desk · Updated 13 Sept 2026

Every mutual fund scheme has two plans: Direct (bought from the AMC/platform, no commission) and Regular (via a distributor who earns ~1% yearly). Returns are otherwise identical.

The maths

On ₹10,000/month for 20 years, a 1% expense gap at 12% vs 11% returns means roughly ₹1 crore vs ₹85 lakh — a ₹15 lakh leak to commission. Platforms like Kuvera, Coin and Groww all offer direct plans.

When regular still makes sense

If you genuinely need an adviser's behavioural coaching and financial planning, a good adviser earning via fee (not hidden commission) can pay for themselves. Otherwise, go direct.

Educational content, not financial advice.

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