Should you switch from regular to direct mutual funds?

Summary: Are you currently invested in the regular plans of your mutual funds and want to switch to their direct counterparts? Here are some things to keep in mind before doing so. I have a few regular mutual fund SIPs. Since direct plans give more returns, should I stop regular plans and start direct plans in their place? – Shailendra Pathak Regular plan and direct plan – these are the two variants of every mutual fund scheme. Contrary to a direct plan, a regular mutual fund plan is one in which you invest in a mutual fund scheme through an intermediary (distributors or brokers). These intermediaries handhold you in the process of mutual fund investing, assist you in the paperwork while making transactions and offer expert guidance, among many other things. In a direct plan, you are devoid of any such assistance from intermediaries since you purchase mutual funds directly from the AMC or fund house. Although direct plans offer higher returns (due to lower e

This article was originally published on September 14, 2022, and last updated on December 29, 2025.