Regular vs Direct Plans

The short version

A regular plan is bought through a distributor such as I Tag Financials. The AMC pays the distributor a commission out of the scheme's expenses. A direct plan is bought without a distributor. No commission is paid, so its expense ratio is lower.

We distribute regular plans and earn commission on them. Direct plans carry a lower expense ratio, and you are free to choose them.

What is the same

• The scheme, its investment objective and its fund manager.
• The portfolio of securities held.
• The risks. See the Mutual Fund Risk Disclosure.
• The regulation, the scheme documents and the investor protections that apply.

What is different

	Regular plan	Direct plan
How you invest	Through a mutual fund distributor	Yourself with the AMC, or through a platform or SEBI-registered Investment Adviser that offers direct plans
Distributor commission	Paid by the AMC from scheme expenses	None
Expense ratio	Higher	Lower
NAV	Separate NAV, lower over time than the direct plan of the same scheme because of the higher expenses	Separate NAV, higher over time than the regular plan of the same scheme
Who helps you	The distributor: scheme information, suitability, paperwork, KYC support, transactions and ongoing service	You do this yourself, or pay a separate fee to an adviser or platform if you use one
What you pay directly	No separate distribution fee to us	Nothing to the AMC; an adviser or platform may charge its own fee

The exact expense ratio of each plan is published by the AMC for every scheme. Compare the two figures for the scheme you are considering.

Why the cost difference matters

The gap between the two expense ratios is charged every year on the value of your investment. Over a long holding period a small annual difference adds up, because the amount you would otherwise have kept also stays invested. All else being equal, the same scheme held in a direct plan will be worth more than in a regular plan.

The question for you is whether the service you receive from a distributor is worth that difference. For some investors it is. For others it is not. Both answers are reasonable.

When a regular plan may suit

• You want a person to explain schemes and help you judge whether one is suitable for your goal.
• You want help with KYC, forms, nominations, bank changes and other servicing.
• You value someone to speak to when markets fall or your circumstances change.
• You would rather not select and monitor schemes on your own.

When a direct plan may suit

• You are comfortable choosing and reviewing schemes yourself.
• You are comfortable handling transactions and paperwork online.
• Keeping costs as low as possible is your priority.
• You prefer to pay a separate, visible fee to a SEBI-registered Investment Adviser instead of commission built into the scheme's expenses.

Where we stand

• We are a distributor. Under AMFI and SEBI rules, distributors cannot deal in direct plans, so we cannot place a direct plan transaction for you.
• Any investment you make through us, including through the transaction platform and app we make available, is in a regular plan and involves payment of commission to us.
• We have a financial interest in you choosing a regular plan. Read our Commission & Conflict Disclosure.
• We will not discourage you from choosing a direct plan, and we will not treat you differently for asking about one.

Moving between plans

Moving an existing investment from a regular plan to a direct plan of the same scheme, or the other way, may have tax consequences, and a lock-in period, where one applies, may have to be completed first. SEBI's Master Circular for Mutual Funds dated 20 March 2026 (paragraph 11.7.3) states that exit load shall not be charged on a switch from the regular plan to the direct plan, or the other way, under the same scheme. Check with the AMC and a tax professional before you move.