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How will I benefit if I shift from Regular to Direct plan?

Direct plans charge lower expenses because of which they generate higher returns than Regular plans

I have been investing in mutual funds for the last 10 years through distributors. I have learned that the distributor gets around 1% of the value as commission. If I transfer the entire money in the Direct plan, how will I benefit?
-Dr. Amit Pathak

Regular plans charge a higher annual expense ratio than the direct plans as they include the distributors' commission. In case of equity funds, this difference can be around 1%. This can make a meaningful difference to the worth of your investments over a period of time.

However, please note that direct plans also require more work from you as there won't be a distributor to help you. You'll have to manage your investments, do the paperwork and deal with the AMC on your own. But, if you are capable of doing all that by yourself, you should definitely go with direct plan. That way, in the long run, you will end up accumulating an even better corpus.

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