DISCLAIMER:-
THE MUTUAL FUND RETURN DATA IS FOR EDUCATIONAL PURPOSES ONLY AND MAY VARY WITH MARKET CONDITIONS. THE STORY OF RAVI IS A FICTIONAL EXAMPLE CREATED TO ILLUSTRATE FINANCIAL IMPACT. MUTUAL FUND INVESTMENTS ARE SUBJECT TO MARKET RISKS. PLEASE CONSULT A SEBI-REGISTERED ADVISOR BEFORE INVESTING.
INTRODUCTION:
WHEN INVESTING IN MUTUAL FUNDS, MANY PEOPLE FOCUS ON WHICH FUND TO CHOOSE — BUT THEY OFTEN IGNORE A CRITICAL DECISION: WHETHER TO INVEST VIA A REGULAR PLAN OR A DIRECT PLAN.
IN THIS ARTICLE, WE’LL EXPLAIN THE KEY DIFFERENCES, SHOW YOU HOW THEY IMPACT YOUR WEALTH AND SHARE THE STORY OF RAVI, WHO CHOSE THE SMARTER PATH AND EARNED LAKHS MORE — JUST BY MAKING ONE SMALL CHANGE. WE’LL USE MOTILAL OSWAL MIDCAP FUND AS A REAL-WORLD EXAMPLE.
REGULAR VS DIRECT MUTUAL FUNDS: WHAT’S THE DIFFERENCE?
| FEATURE | REGULAR PLAN | DIRECT PLAN |
| PURCHASE MODE | THROUGH BROKER / AGENT | DIRECT VIA AMC OR PLATFORM (NO AGENT) |
| EXPENSE RATIO | HIGHER (DUE TO COMMISSIONS) | LOWER (NO DISTRIBUTOR FEE) |
| RETURNS | SLIGHTLY LOWER | HIGHER OVER TIME |
| GUIDANCE | AVAILABLE VIA ADVISOR | DO-IT-YOURSELF APPROACH |
| IDEAL FOR | BEGINNERS NEEDING ADVICE | INVESTORS COMFORTABLE WITH SELF-RESEARCH |
REAL EXAMPLE: MOTILAL OSWAL MIDCAP FUND (10-YEAR COMPARISON)
AS OF JUNE 2025
LET’S COMPARE HOW THIS FUND PERFORMED UNDER BOTH PLANS FOR A ₹10,000 SIP STARTED IN JUNE 2015:
| PLAN TYPE | 10-YEAR ANNUAL RETURN (CAGR) | FINAL VALUE (₹10,000/MONTH SIP) |
| REGULAR PLAN | ~20.5% | ₹38.3 LAKHS |
| DIRECT PLAN | ~22.3% | ₹41.2 LAKHS |
| DIFFERENCE | ~1.8% EXTRA PER YEAR | ₹2.9 LAKHS MORE |
SOURCE:-
BASED ON MUTUAL FUND CALCULATORS AND OFFICIAL FACTSHEETS. ACTUAL VALUES MAY VARY SLIGHTLY DEPENDING ON THE DATE AND MARKET CONDITIONS.
PARAG PARIKH FLEXI CAP FUND (10-YEAR SIP RETURNS)
INVESTMENT: ₹10,000/MONTH SIP FROM JUNE 2015 TO JUNE 2025
TOTAL INVESTED: ₹12 LAKHS
| PLAN TYPE | CAGR (10Y) | FINAL VALUE |
| REGULAR PLAN | ~16.8% | ₹32.5 LAKHS |
| DIRECT PLAN | ~18.4% | ₹34.8 LAKHS |
| DIFFERENCE | ~1.6% P.A. | ₹2.3 LAKHS MORE |
DATA IS BASED ON HISTORICAL FUND RETURNS AND STANDARD SIP CALCULATORS AS OF JUNE 2025. REAL RETURNS MAY VARY.
STORY: HOW RAVI MADE ₹2.9 LAKHS MORE WITH ONE SMART DECISION
RAVI AND HIS FRIEND KARAN, BOTH IT PROFESSIONALS IN MUMBAI, STARTED INVESTING ₹10,000/MONTH IN MOTILAL OSWAL MIDCAP FUND IN 2015.
KARAN WENT THROUGH A BANK RM AND UNKNOWINGLY OPTED FOR THE REGULAR PLAN.
RAVI, AFTER RESEARCHING ONLINE, CHOSE THE DIRECT PLAN FROM THE AMC’S OFFICIAL WEBSITE.
IN 2025, BOTH HAD INVESTED ₹12 LAKHS.
KARAN’S CORPUS: ₹38.3 LAKHS (REGULAR PLAN)
RAVI’S CORPUS: ₹41.2 LAKHS (DIRECT PLAN)
RAVI’S CHOICE GAVE HIM AN EXTRA ₹2.9 LAKHS, WITHOUT ANY EXTRA EFFORT. HE USED THIS SURPLUS TO GO ON A EUROPE TRIP WITH HIS FAMILY — A DREAM HE HAD SAVED FOR YEARS.
THIS STORY SHOWS THAT SMALL CHOICES CAN MAKE BIG FINANCIAL DIFFERENCES.
WHO SHOULD CHOOSE WHAT?
CHOOSE REGULAR PLAN IF:-
YOU ARE A BEGINNER.
YOU NEED HELP UNDERSTANDING FUNDS.
YOU WANT CONVENIENCE OVER RETURN OPTIMIZATION.
CHOOSE DIRECT PLAN IF:-
YOU CAN COMPARE AND SELECT FUNDS ON YOUR OWN.
YOU WANT TO ELIMINATE COMMISSION CHARGES.
YOU AIM TO MAXIMIZE LONG-TERM RETURNS.
EXPERT TIP:-
EVEN A 1%–2% DIFFERENCE IN RETURNS COMPOUNDS MASSIVELY OVER TIME. ON A ₹10,000 SIP FOR 20 YEARS, IT CAN MEAN ₹15–20 LAKHS EXTRA!
CONCLUSION
THE DIFFERENCE BETWEEN REGULAR AND DIRECT MUTUAL FUND PLANS MAY LOOK SMALL, BUT OVER TIME, IT BECOMES SUBSTANTIAL — AS SHOWN IN THE CASE OF MOTILAL OSWAL MIDCAP FUND. WHETHER YOU’RE NEW OR EXPERIENCED, UNDERSTANDING THESE CHOICES CAN BE THE DIFFERENCE BETWEEN AVERAGE WEALTH AND GREAT WEALTH.
START SMART, INVEST RIGHT — AND DON’T LET UNNECESSARY CHARGES EAT INTO YOUR FUTURE!
EXCEL SHEET OF COMPARISON:-
| MOTILAL REGULAR | MOTILAL DIRECT | PPFAS REGULAR | PPFAS DIRECT | MONTH | YEAR | |
| 10000 | 10000 | 10000 | 10000 | 1 | 1 | |
| 20156.61337 | 20169.17071 | 20130.25172 | 20141.74395 | 2 | 1 | |
| 30472.29289 | 30510.37402 | 30392.4517 | 30427.241 | 3 | 1 | |
| 40949.52974 | 41026.52019 | 40788.31861 | 40858.52875 | 4 | 1 | |
| 51590.85412 | 51720.56877 | 51319.59346 | 51437.67369 | 5 | 1 | |
| 62398.83588 | 62595.52932 | 61988.03999 | 62166.77162 | 6 | 1 | |
| 73376.08508 | 73654.46236 | 72795.44485 | 73047.94803 | 7 | 1 | |
| 84525.25268 | 84900.48016 | 83743.61803 | 84083.35853 | 8 | 1 | |
| 95849.03115 | 96336.74765 | 94834.39304 | 95275.18931 | 9 | 1 | |
| 107350.1551 | 107966.4833 | 106069.6273 | 106625.6575 | 10 | 1 | |
| 119031.4021 | 119792.96 | 117451.2024 | 118137.0118 | 11 | 1 | |
| 130895.593 | 131819.5061 | 128981.0245 | 129811.5325 | 12 | 2 | |
| 142945.593 | 144049.5061 | 140661.0245 | 141651.5325 | 13 | 2 | |
| 155184.3121 | 156486.4018 | 152493.1585 | 153659.3573 | 14 | 2 | |
| 167614.7059 | 169133.6935 | 164479.4081 | 165837.3858 | 15 | 2 | |
| 180239.7763 | 181994.9403 | 176621.7806 | 178188.0305 | 16 | 2 | |
| 193062.5722 | 195073.7617 | 188922.3097 | 190713.7381 | 17 | 2 | |
| 206086.1902 | 208373.8384 | 201383.0552 | 203416.9901 | 18 | 2 | |
| 219313.7755 | 221898.9135 | 214006.1041 | 216300.303 | 19 | 2 | |
| 232748.5225 | 235652.7933 | 226793.5704 | 229366.229 | 20 | 2 | |
| 246393.6755 | 249639.3484 | 239747.5956 | 242617.3566 | 21 | 2 | |
| 260252.5299 | 263862.5151 | 252870.3492 | 256056.311 | 22 | 2 | |
| 274328.4325 | 278326.2961 | 266164.0289 | 269685.7544 | 23 | 2 | |
| 288624.7826 | 293034.762 | 279630.8611 | 283508.387 | 24 | 3 | |
| 303145.0326 | 307992.052 | 293273.1011 | 297526.947 | 25 | 3 | |
| 317892.6891 | 323202.3755 | 307093.0336 | 311744.2116 | 26 | 3 | |
| 332871.3136 | 338670.0132 | 321092.9731 | 326162.9973 | 27 | 3 | |
| 348084.5235 | 354399.318 | 335275.2643 | 340786.1606 | 28 | 3 | |
| 363535.9925 | 370394.7166 | 349642.2822 | 355616.5984 | 29 | 3 | |
| 379229.4522 | 386660.7105 | 364196.433 | 370657.2488 | 30 | 3 | |
| 395168.6925 | 403201.8773 | 378940.1541 | 385911.0912 | 31 | 3 | |
| 411357.5626 | 420022.8723 | 393875.9147 | 401381.1476 | 32 | 3 | |
| 427799.972 | 437128.4292 | 409006.2161 | 417070.4827 | 33 | 3 | |
| 444499.8916 | 454523.3621 | 424333.5923 | 432982.2047 | 34 | 3 | |
| 461461.3542 | 472212.5662 | 439860.6103 | 449119.4657 | 35 | 3 | |
| 478688.456 | 490201.02 | 455589.8703 | 465485.4626 | 36 | 4 | |
| 496185.3572 | 508493.7856 | 471524.0066 | 482083.4377 | 37 | 4 | |
| 513956.2834 | 527096.0113 | 487665.6878 | 498916.679 | 38 | 4 | |
| 532005.5259 | 546012.9322 | 504017.6171 | 515988.5213 | 39 | 4 | |
| 550337.4438 | 565249.872 | 520582.5332 | 533302.3467 | 40 | 4 | |
| 568956.464 | 584812.2444 | 537363.2101 | 550861.5851 | 41 | 4 | |
| 587867.0829 | 604705.5549 | 554362.4582 | 568669.715 | 42 | 4 | |
| 607073.8675 | 624935.402 | 571583.1245 | 586730.2645 | 43 | 4 | |
| 626581.4559 | 645507.4789 | 589028.0928 | 605046.8113 | 44 | 4 | |
| 646394.5593 | 666427.575 | 606700.2849 | 623622.9841 | 45 | 4 | |
| 666517.9623 | 687701.5779 | 624602.6604 | 642462.4629 | 46 | 4 | |
| 686956.5248 | 709335.4746 | 642738.2173 | 661568.9799 | 47 | 4 | |
| 707715.1825 | 731335.3535 | 661109.993 | 680946.3203 | 48 | 5 | |
| 728798.9485 | 753707.4059 | 679721.0642 | 700598.3227 | 49 | 5 | |
| 750212.9144 | 776457.9279 | 698574.5478 | 720528.8804 | 50 | 5 | |
| 771962.2518 | 799593.3221 | 717673.6013 | 740741.9417 | 51 | 5 | |
| 794052.2128 | 823120.0995 | 737021.4233 | 761241.511 | 52 | 5 | |
| 816488.1321 | 847044.881 | 756621.2539 | 782031.6492 | 53 | 5 | |
| 839275.4279 | 871374.3998 | 776476.3757 | 803116.4751 | 54 | 5 | |
| 862419.6033 | 896115.5027 | 796590.1139 | 824500.1656 | 55 | 5 | |
| 885926.2474 | 921275.1527 | 816965.8369 | 846186.957 | 56 | 5 | |
| 909801.0369 | 946860.4303 | 837606.9573 | 868181.1456 | 57 | 5 | |
| 934049.7376 | 972878.5358 | 858516.9318 | 890487.0885 | 58 | 5 | |
| 958678.2054 | 999336.7915 | 879699.2623 | 913109.2047 | 59 | 5 | |
| 983692.3879 | 1026242.643 | 901157.4963 | 936051.9757 | 60 | 6 | |
| 1009098.326 | 1053603.663 | 922895.2275 | 959319.9466 | 61 | 6 | |
| 1034902.155 | 1081427.552 | 944916.0964 | 982917.7269 | 62 | 6 | |
| 1061110.106 | 1109722.139 | 967223.7908 | 1006849.991 | 63 | 6 | |
| 1087728.509 | 1138495.388 | 989822.0469 | 1031121.481 | 64 | 6 | |
| 1114763.792 | 1167755.396 | 1012714.649 | 1055737.005 | 65 | 6 | |
| 1142222.484 | 1197510.397 | 1035905.431 | 1080701.439 | 66 | 6 | |
| 1170111.215 | 1227768.766 | 1059398.278 | 1106019.729 | 67 | 6 | |
| 1198436.721 | 1258539.018 | 1083197.122 | 1131696.89 | 68 | 6 | |
| 1227205.843 | 1289829.812 | 1107305.951 | 1157738.009 | 69 | 6 | |
| 1256425.527 | 1321649.955 | 1131728.801 | 1184148.245 | 70 | 6 | |
| 1286102.83 | 1354008.402 | 1156469.763 | 1210932.831 | 71 | 6 | |
| 1316244.92 | 1386914.259 | 1181532.98 | 1238097.072 | 72 | 7 | |
| 1346859.076 | 1420376.786 | 1206922.65 | 1265646.349 | 73 | 7 | |
| 1377952.69 | 1454405.402 | 1232643.025 | 1293586.121 | 74 | 7 | |
| 1409533.271 | 1489009.682 | 1258698.412 | 1321921.922 | 75 | 7 | |
| 1441608.447 | 1524199.365 | 1285093.175 | 1350659.367 | 76 | 7 | |
| 1474185.963 | 1559984.355 | 1311831.735 | 1379804.147 | 77 | 7 | |
| 1507273.686 | 1596374.722 | 1338918.568 | 1409362.036 | 78 | 7 | |
| 1540879.607 | 1633380.707 | 1366358.213 | 1439338.891 | 79 | 7 | |
| 1575011.842 | 1671012.725 | 1394155.263 | 1469740.65 | 80 | 7 | |
| 1609678.633 | 1709281.366 | 1422314.375 | 1500573.335 | 81 | 7 | |
| 1644888.353 | 1748197.401 | 1450840.264 | 1531843.055 | 82 | 7 | |
| 1680649.504 | 1787771.782 | 1479737.708 | 1563556.004 | 83 | 7 | |
| 1716970.722 | 1828015.645 | 1509011.545 | 1595718.465 | 84 | 8 | |
| 1753860.779 | 1868940.316 | 1538666.68 | 1628336.81 | 85 | 8 | |
| 1791328.584 | 1910557.313 | 1568708.078 | 1661417.5 | 86 | 8 | |
| 1829383.185 | 1952878.347 | 1599140.77 | 1694967.089 | 87 | 8 | |
| 1868033.771 | 1995915.33 | 1629969.853 | 1728992.222 | 88 | 8 | |
| 1907289.678 | 2039680.372 | 1661200.491 | 1763499.642 | 89 | 8 | |
| 1947160.384 | 2084185.791 | 1692837.912 | 1798496.183 | 90 | 8 | |
| 1987655.519 | 2129444.11 | 1724887.417 | 1833988.78 | 91 | 8 | |
| 2028784.863 | 2175468.069 | 1757354.372 | 1869984.462 | 92 | 8 | |
| 2070558.346 | 2222270.617 | 1790244.214 | 1906490.361 | 93 | 8 | |
| 2112986.058 | 2269864.928 | 1823562.453 | 1943513.71 | 94 | 8 | |
| 2156078.245 | 2318264.395 | 1857314.667 | 1981061.841 | 95 | 8 | |
| 2199845.313 | 2367482.64 | 1891506.509 | 2019142.195 | 96 | 9 | |
| 2244297.832 | 2417533.512 | 1926143.707 | 2057762.316 | 97 | 9 | |
| 2289446.537 | 2468431.1 | 1961232.059 | 2096929.852 | 98 | 9 | |
| 2335302.331 | 2520189.725 | 1996777.444 | 2136652.565 | 99 | 9 | |
| 2381876.288 | 2572823.954 | 2032785.813 | 2176938.324 | 100 | 9 | |
| 2429179.655 | 2626348.601 | 2069263.197 | 2217795.109 | 101 | 9 | |
| 2477223.856 | 2680778.728 | 2106215.706 | 2259231.014 | 102 | 9 | |
| 2526020.494 | 2736129.653 | 2143649.527 | 2301254.247 | 103 | 9 | |
| 2575581.352 | 2792416.954 | 2181570.931 | 2343873.135 | 104 | 9 | |
| 2625918.4 | 2849656.471 | 2219986.267 | 2387096.12 | 105 | 9 | |
| 2677043.793 | 2907864.313 | 2258901.969 | 2430931.765 | 106 | 9 | |
| 2728969.878 | 2967056.861 | 2298324.555 | 2475388.753 | 107 | 9 | |
| 2781709.195 | 3027250.774 | 2338260.628 | 2520475.892 | 108 | 10 | |
| 2835274.481 | 3088462.992 | 2378716.874 | 2566202.114 | 109 | 10 | |
| 2889678.67 | 3150710.741 | 2419700.07 | 2612576.478 | 110 | 10 | |
| 2944934.901 | 3214011.539 | 2461217.079 | 2659608.17 | 111 | 10 | |
| 3001056.519 | 3278383.202 | 2503274.854 | 2707306.508 | 112 | 10 | |
| 3058057.077 | 3343843.845 | 2545880.439 | 2755680.941 | 113 | 10 | |
| 3115950.34 | 3410411.89 | 2589040.969 | 2804741.053 | 114 | 10 | |
| 3174750.288 | 3478106.072 | 2632763.672 | 2854496.562 | 115 | 10 | |
| 3234471.123 | 3546945.441 | 2677055.872 | 2904957.325 | 116 | 10 | |
| 3295127.265 | 3616949.37 | 2721924.984 | 2956133.339 | 117 | 10 | |
| 3356733.364 | 3688137.561 | 2767378.525 | 3008034.742 | 118 | 10 | |
| 3419304.296 | 3760530.047 | 2813424.105 | 3060671.816 | 119 | 10 | |
| 3482855.173 | 3834147.203 | 2860069.438 | 3114054.989 | 120 | 11 | |
| 351292.0296 | 253985.551 | |||||
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