Figures as of: 5 November 2026

  • Median expense ratio: Direct plan 0.24%, Regular plan 0.55%, a gap of 0.31 percentage points
  • 5 years: median annualised return of Direct plans 7.56%, Regular plans 7.22%
  • 5 years: every fund returned more in the Direct plan than in the Regular plan
  • ₹1,00,000 over 5 years at the median return: ₹1,43,963 in a Direct plan, ₹1,41,702 in a Regular plan

Direct vs Regular plans in Nifty Index funds show a median expense ratio gap of 0.31 percentage points. Every fund returned more in the Direct plan than in the Regular plan.

Over the 5-year period ending 5 November 2026, the median annualised return was 7.56% for the Direct plan and 7.22% for the Regular plan. These figures represent the performance of the 17 funds that have both plans.

What the two plans are

A mutual fund can offer a Direct plan and a Regular plan. Both hold the same portfolio. A Direct plan is bought straight from the fund house; a Regular plan is bought through a distributor, and its expense ratio is higher. This page compares the two plans of the same 26 Nifty Index funds, using the expense ratio and the annualised returns the data feed publishes for each plan, and takes the median across funds. Only funds that have the figure for both plans on the same date are counted for it. It describes what happened and says nothing about the next period.

Direct vs Regular plans in Nifty Index funds: the figures

Expense ratio of Direct and Regular plans of 26 Nifty Index funds, median — Source: expense ratio and return data via Accord Fintech, ThePip calculations
Measure Value
Direct plan 0.24%
Regular plan 0.55%
Gap (Regular minus Direct), median of funds 0.31 percentage points
Annualised return of Direct and Regular plans of the same funds, to 5 November 2026, median — Source: expense ratio and return data via Accord Fintech, ThePip calculations
Period Funds with both plans Direct plan Regular plan Gap (Direct minus Regular), median of funds Funds where Direct returned more
1 year 23 −3.33% −3.61% 0.31 percentage points 23 of 23
3 years 18 9.43% 9.10% 0.31 percentage points 18 of 18
5 years 17 7.56% 7.22% 0.32 percentage points 17 of 17

Over 1 year, the Direct plan returned −3.33% while the Regular plan returned −3.61%. The 3-year median annualised return was 9.43% for the Direct plan and 9.10% for the Regular plan. A ₹1,00,000 investment over 5 years becomes ₹1,43,963 in a Direct plan and ₹1,41,702 in a Regular plan. Every fund returned more in the Direct plan than in the Regular plan.

What ₹1,00,000 would have become over 5 years at each plan’s median annualised return — Source: expense ratio and return data via Accord Fintech, ThePip calculations
Plan Value
Direct plan ₹1,43,963
Regular plan ₹1,41,702
Difference ₹2,261

FAQs

What is the difference between a Direct plan and a Regular plan?

Both plans of a fund hold the same portfolio. A Direct plan is bought straight from the fund house; a Regular plan is bought through a distributor, and its expense ratio is higher.

How much lower is the expense ratio of a Direct plan in Nifty Index funds?

Across 26 funds, the median expense ratio is 0.24% for the Direct plan and 0.55% for the Regular plan, a median gap of 0.31 percentage points.

Did Direct plans return more than Regular plans in Nifty Index funds?

Over 5 years to 5 November 2026, every fund returned more in the Direct plan than in the Regular plan. The median annualised return was 7.56% for Direct plans and 7.22% for Regular plans.

What difference does the plan make to ₹1,00,000?

At the median annualised return of each plan over 5 years, ₹1,00,000 would have become ₹1,43,963 in a Direct plan and ₹1,41,702 in a Regular plan, a difference of ₹2,261.

Expense ratio and return data: Accord Fintech. Calculations: ThePip. For information only; not investment advice.