Value Funds: Direct Plans Cost 1.08 Points Less a Year and Returned 1.11 Points More a Year Over 5 Years
Key Highlights
Direct plans of Value funds cost 1.08 percentage points less a year at the median. Over 5 years the median Direct return was 12.66% a year against 11.47%.
Figures as of: 5 November 2026
- Median expense ratio: Direct plan 1.24%, Regular plan 2.29%, a gap of 1.08 percentage points
- 5 years: median annualised return of Direct plans 12.66%, Regular plans 11.47%
- 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: ₹1,81,528 in a Direct plan, ₹1,72,077 in a Regular plan
Direct vs Regular plans in Value funds show a median expense ratio gap of 1.08 percentage points. Over the 5-year period ending 5 November 2026, the median annualised return for the Direct plan was 12.66%. The Regular plan returned a median annualised 11.47% over the same duration.
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 24 Value 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 Value funds: the figures
| Measure | Value |
|---|---|
| Direct plan | 1.24% |
| Regular plan | 2.29% |
| Gap (Regular minus Direct), median of funds | 1.08 percentage points |
| Period | Funds with both plans | Direct plan | Regular plan | Gap (Direct minus Regular), median of funds | Funds where Direct returned more |
|---|---|---|---|---|---|
| 1 year | 22 | −1.04% | −2.32% | 1.05 percentage points | 22 of 22 |
| 3 years | 21 | 13.07% | 12.33% | 1.19 percentage points | 21 of 21 |
| 5 years | 19 | 12.66% | 11.47% | 1.11 percentage points | 19 of 19 |
Every fund returned more in the Direct plan than in the Regular plan. Over 3 years, the Direct plan returned a median 13.07% while the Regular plan returned 12.33%. The median gap in returns was 1.19 percentage points for that period. A ₹1,00,000 investment over 5 years becomes ₹1,81,528 in a Direct plan and ₹1,72,077 in a Regular plan.
| Plan | Value |
|---|---|
| Direct plan | ₹1,81,528 |
| Regular plan | ₹1,72,077 |
| Difference | ₹9,451 |
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 Value funds?
Across 24 funds, the median expense ratio is 1.24% for the Direct plan and 2.29% for the Regular plan, a median gap of 1.08 percentage points.
Did Direct plans return more than Regular plans in Value 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 12.66% for Direct plans and 11.47% 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 ₹1,81,528 in a Direct plan and ₹1,72,077 in a Regular plan, a difference of ₹9,451.
Expense ratio and return data: Accord Fintech. Calculations: ThePip. For information only; not investment advice.