What is the difference between Direct and Regular mutual funds?

Direct funds are purchased directly from the AMC, so there is no distributor commission. Regular funds include a commission paid to the broker. This leads to a lower expense ratio for Direct funds.

Can I switch from Regular to Direct funds?

Yes, you can switch. However, it is considered a redemption and a fresh purchase, which may trigger exit loads and capital gains tax.

Direct vs Regular Fund

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Quick Summary: Direct vs Regular Fund

A Direct vs Regular fund calculator measures the long-term wealth lost to distributor commissions. Direct plans have a lower expense ratio because they bypass intermediaries, often leading to 0.5% to 1.5% higher annual returns which compound significantly over 20+ years.

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Regulatory Disclaimer

Last verified May 2026

Statutory Disclosure

Nature:Calculator platform and is NOT a SEBI-registered Investment Adviser. All calculations are indicative.

Risk:"Investments in securities market are subject to market risks. Read all related documents carefully before investing."

Consult a SEBI-registered IA or CA for personalised advice.

9 out of 10 traders in F&O incurred net losses (SEBI 2023). Tax estimates based on IT Act 2025. Trezoriq is not liable for financial decisions based on results.