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

Expense ratio of Direct and Regular plans of 24 Value funds, median — Source: expense ratio and return data via Accord Fintech, ThePip calculations
Measure Value
Direct plan 1.24%
Regular plan 2.29%
Gap (Regular minus Direct), median of funds 1.08 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 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.

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 ₹1,81,528
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.