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Direct vs Regular Mutual Funds
There are multiple investment options available in the market, and mutual funds stand out as a popular choice for many. Mutual Funds are further available in two forms: Direct and Regular. Understanding the difference between direct vs regular mutual funds helps you invest as per your goals and earn profits.
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- Direct vs Regular Mutual Funds
What are Direct Mutual Funds?
Direct mutual funds, as the name suggests, are purchased directly from the Asset Management Company (AMC) or fund house. This means there's no intermediary, such as a distributor, broker, or financial advisor, involved in the transaction. When you invest in a direct plan, you are dealing directly with the fund house, typically through their website, app, or physical branches.
What are Regular Mutual Funds?
Regular mutual funds, conversely, are purchased through an intermediary. These intermediaries could be financial advisors, mutual fund distributors, banks, or online platforms that offer investment plans or services. The role of these intermediaries is to assist investors in selecting suitable funds, and providing ongoing support and advice.
- Insurance Companies
- Mutual Funds
| Returns | ||||
|---|---|---|---|---|
| Fund Name | 5 Years | 7 Years | 10 Years | |
| Top 300 Fund SBI Life | 8.88% | 10.5% |
11.55%
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|
|
| Opportunities Fund HDFC Life | 12.42% | 13.27% |
13.64%
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|
|
| High Growth Fund Axis Max Life | 17.85% | 19.5% |
17.59%
View Plan
|
|
| Opportunities Fund ICICI Prudential Life | 11.28% | 11.53% |
11.84%
View Plan
|
|
| Multi Cap Fund Tata AIA Life | 21% | 18.96% |
22%
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|
|
| Accelerator Mid-Cap Fund II Bajaj Life | 12.27% | 11.54% |
13.22%
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|
| Multiplier Birla Sun Life | 14.37% | 13.37% |
14.74%
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|
| Virtue II PNB MetLife | 12.61% | 14.79% |
14.23%
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|
| Equity II Fund Canara HSBC Life | 8.46% | 8.24% |
9.73%
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| Blue-Chip Equity Fund Star Union Dai-ichi Life | 7.49% | 8.34% |
9.68%
View Plan
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|
Fund rating powered by
Last updated: Mar 2026
Compare more funds
| Fund Name | AUM | Return 3 Years | Return 5 Years | Return 10 Years | Minimum Investment | Return Since Launch |
|---|---|---|---|---|---|---|
| Motilal Oswal BSE Enhanced Value Index Fund Regular - Growth | ₹1,748.84 Crs | 28.91% | N/A | N/A | ₹500 | 28.94% |
| Bandhan Small Cap Fund Regular-Growth | ₹20,474.12 Crs | 26.07% | 20.2% | N/A | ₹1,000 | 25.81% |
| Motilal Oswal Midcap Fund Regular-Growth | ₹33,689.20 Crs | 17.76% | 19.95% | 15.5% | ₹500 | 18.83% |
| ICICI Prudential Infrastructure Fund-Growth | ₹8,097.89 Crs | 20.26% | 23.55% | 17.35% | ₹5,000 | 14.94% |
| Canara Robeco Large Cap Fund Regular-Growth | ₹17,103.62 Crs | 11.03% | 9.6% | 12.89% | ₹100 | 11.61% |
| Mirae Asset Large Cap Fund Direct- Growth | ₹40,184.41 Crs | 10.21% | 9.85% | 13.44% | ₹5,000 | 14.5% |
| Kotak Midcap Fund Regular-Growth | ₹61,694.40 Crs | 17.96% | 16.27% | 17.08% | ₹100 | 14.06% |
| SBI Small Cap Fund-Growth | ₹34,931.73 Crs | 10.62% | 13.02% | 16.74% | ₹5,000 | 17.62% |
| SBI Gold ETF | ₹24,897.99 Crs | 33.28% | 25.87% | 16.3% | ₹5,000 | 13.46% |
Updated as of Mar 2026
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Difference Between Regular and Direct Mutual Funds
The key differences between direct vs regular mutual funds are:
| Feature | Direct Mutual Funds | Regular Mutual Funds |
| Distribution | Directly from the AMC (fund house) | Through intermediaries (distributors, advisors, banks) |
| Expense Ratio | Lower (no distribution commission) | Higher (includes commission for intermediaries) |
| Returns | Potentially higher (due to lower expense ratio) | Comparatively lower (due to higher expense ratio) |
| Advice/Support | No direct advice from the AMC; self-research required | Access to advice, research, and support from an intermediary |
| Suitability | For informed investors comfortable with self-research | For investors seeking guidance and convenience |
| Transaction | Online platforms of AMCs, specific direct fund apps | Through intermediary platforms, agents |
Choosing Between a Regular and Direct Mutual Fund
The choice between a direct and regular SIP mutual fund ultimately depends on an individual's financial literacy, comfort with self-management, and desire for professional guidance.
Who Should Choose Direct Mutual Funds?
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Investors who understand mutual funds and market dynamics.
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Those who prefer to research and make independent investment decisions.
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Individuals aiming to maximize returns by minimizing fees.
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Long-term investors who benefit most from cost savings over time.
Who Should Choose Regular Mutual Funds?
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New investors who need guidance on schemes, risks, and market volatility.
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Those who prefer professional advice for portfolio rebalancing.
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Individuals lacking time to research and monitor their investments.
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Investors who appreciate intermediaries handling paperwork and updates.
Conclusion
The key differentiator between direct vs. regular mutual funds lies in the expense ratio and the presence or absence of an intermediary. Whether you opt for direct mutual funds or regular mutual funds, remember to align your investment decisions with your financial goals and risk appetite.
FAQs
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What's the core difference in direct vs regular mutual funds?
Direct funds have lower fees (no commission); regular funds include intermediary fees. -
Why might direct mutual funds give more return?
Lower expense ratios in direct funds mean more of your money grows. -
Who are direct mutual funds for?
Direct mutual funds are for investors who are comfortable self-managing their investments. -
Who should pick regular mutual funds?
New or busy investors who need advice and support from an expert.
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*All savings are provided by the insurer as per the IRDAI approved insurance
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*Tax benefit is subject to changes in tax laws. Standard T&C Apply
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˜The insurers/plans mentioned are arranged in order of highest to lowest first year premium (sum of individual single premium and individual non-single premium) offered by Policybazaar’s insurer partners offering life insurance investment plans on our platform, as per ‘first year premium of life insurers as at 31.03.2025 report’ published by IRDAI. Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by any insurer. For complete list of insurers in India refer to the IRDAI website www.irdai.gov.in
^^The information relating to mutual funds presented in this article is for educational purpose only and is not meant for sale. Investment is subject to market risks and the risk is borne by the investor. Please consult your financial advisor before planning your investments.