Direct Plan

Investments

A direct plan is a mutual fund class purchased directly from the AMC without distributor commission. Expense ratio is 0.5-1% lower than regular plans. Always choose direct plans.

In detail

On Rs 10L for 20 years at 13% gross, 1% expense difference = Rs 23L lower corpus in regular plan. Direct plans available at: AMC websites, Zerodha Coin, Groww, Kuvera. No extra fees.

Real-life example

🇮🇳 India example

Nifty 50 index fund: Direct plan 0.1% ER, Regular plan 0.35% ER. On Rs 5,000/month SIP for 20 years at 13% gross: Direct = Rs 54.1L, Regular = Rs 52.8L. Rs 1.3L saved from 0.25% difference.

Frequently asked questions

Is there help available for direct plan investors? ▼

Use SEBI-registered fee-only RIAs who charge flat fee and recommend direct plans -- better than paying 1% annual commission to distributor forever.