Archive · 21 Nov 2025
Direct vs Regular Mutual Funds: Corpus Loss Over 10 Years
Direct mutual fund plans are cheaper and give higher returns in the long run, but regular plans offer advice and convenience.
Investors should choose based on their needs and knowledge.
Direct plans offer higher returns due to lower expense ratios
Rs 1 lakh lump sum grows to Rs 5.3-7 lakh in direct plans, Rs 5.3-6.4 lakh in regular plans over 10 years
Rs 10,000 monthly SIP grows to Rs 34-42 lakh in direct plans, Rs 34-39 lakh in regular plans over 10 years
Regular plans popular for advice, trust, and convenience
Investors should choose based on their knowledge, needs, and investing behavior
- Who
- Investors
- What
- Choose between direct and regular mutual fund plans
- When
- When investing in mutual funds
- Where
- India
- Why
- To understand the impact of expense ratios on long-term returns
Direct Plan Advocates
Regular Plan Advocates
Expense Ratio
Direct Plan Advocates
Lower in direct plans (0.37% to 0.67%)
Regular Plan Advocates
Higher in regular plans (1.38% to 1.68%)
Long-term Returns
Direct Plan Advocates
Higher in direct plans due to compounding effect
Regular Plan Advocates
Slightly lower in regular plans
Investor Support
Direct Plan Advocates
Limited in direct plans
Regular Plan Advocates
Available in regular plans through agents or distributors
- Funds Analyzed
- Top five equity mutual funds based on 10-year CAGR
- Investment Amounts
- Rs 1 lakh lump sum and Rs 10,000 monthly SIP over 10 years
- Expense Ratio Difference
- 0.5% to 1% lower in direct plans