+91-22-48913909Direct Vs Regular Mutual Fund Investment Plans
While most of the investors invest in Mutual Funds through regular plans, but the rising popularity of direct plans amongst the new investors has led to an increase in demand. Regular plans have been available to the investors for a much longer time than direct Investment plan. The first direct mutual fund plan got introduced in January 1, 2013.
So, for a fair understanding between regular vs direct Mutual Funds, here’s a comparative article that would guide you in choosing the right plan, as per your investment needs.
Regular Vs Direct : Know the Difference
The regular plans and direct plans are not two different schemes, but in fact, they are variants of the same principal scheme offered by AMCs. Both the plans- direct and regular, prominently differs in some parameters that are:
a. Distribution
An investor can buy a mutual fund with a regular plan through various routes like brokers, RTAs such as CAMS, Karvy, third-party securities market intermediaries, directly through the AMC as well as through various representative offices of the fund house. While, direct plans can be bought through limited platforms - a very few third-party securities intermediaries, RTAs such as CAMS/Karvy, and authorized local representatives of the fund house. But, since many prefer to consider buying Mutual Fund Online, both direct and regular plans are available via the online mode as well as the physical/paper-based mode.
b. Expense Ratio
One of the main reasons why direct plans look attractive is due to its lower expense ratio. Mutual funds with regular plans have higher expense ratios compared to direct plans. The lower expense ratio results from the fact that direct plans don’t incur any agent commissions or distributor fees that are payable to brokers or distribution agents of the regular mutual fund schemes. Due to which, the potential returns offered by the direct mutual fund schemes are higher than that of mutual funds with regular plans. The lower expense ratio of direct plans is gaining attraction of the investors, especially amongst new investors.
c. NAV
In mutual fund investment, the value of the investment is expressed as the fund’s Asset Under Management (AUM). As direct mutual plans have a lower expense ratio, the saving in commissions is added to the return of the scheme in for of a higher NAV (Net Asset Value) each day.
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Therefore, the NAV of a direct plan is relatively higher as compared to regular plans.
| Parameters | Regular Plans | Direct Plans |
|---|---|---|
| Convenience | More | Less |
| NAV | Lower | Higher |
| Expense ratio | Higher (commission to the intermediary) | Lower |
| Returns | Less as the AMC fee is more | More as the expense ratio is lesser |
Fund Selection Methodology used to find 10 funds
Best Direct Mutual Fund Plans
Investors who want to invest in mutual funds with direct plans, here are some of the best performing direct mutual funds as per highest AUM.
Fund NAV Net Assets (Cr) 3 MO (%) 6 MO (%) 1 YR (%) 3 YR (%) 5 YR (%) 2024 (%) Franklin Asian Equity Fund - Direct Growth ₹50.7379
↑ 0.35 ₹954 5.7 18.3 46 24.9 10.6 24.7 Franklin India Opportunities Fund - Direct Growth ₹299.783
↑ 0.44 ₹9,344 10.4 5.3 5.9 23.3 20.2 4.4 Franklin India Feeder - Franklin U S Opportunities Fund - Direct Growth ₹103.994
↓ -0.92 ₹5,800 -0.5 15 19.3 23.1 10.3 12.4 IDBI Small Cap Fund - Direct Growth ₹39.9127
↑ 0.03 ₹758 12.6 23.4 19.1 20.5 20.1 -12.1 Sundaram SMILE Fund - Direct Growth ₹337.386
↑ 0.47 ₹3,922 9.8 18.7 18.3 19.6 18.9 1.5 Franklin Build India Fund - Direct Growth ₹167.072
↑ 0.04 ₹3,199 -0.2 -3.4 2.1 19.6 21.3 4.8 DSP Micro Cap Fund - Direct Growth ₹257.488
↑ 0.65 ₹20,221 13.8 19.8 18.9 19.6 19.8 -1.9 Franklin India Prima Fund - Direct Growth ₹3,271.75
↓ -2.80 ₹12,871 7.9 6 5.2 18.6 16.2 2.4 Edelweiss Economic Resurgence Fund - Direct Growth ₹46.577
↑ 0.01 ₹3,613 5.7 1.5 5.3 16.7 14.9 7 Franklin India Smaller Companies Fund - Direct Growth ₹207.518
↓ -0.02 ₹14,467 7.6 12.3 7.6 15.8 18.6 -7.6 Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 21 Aug 26 Research Highlights & Commentary of 10 Funds showcased
Commentary Franklin Asian Equity Fund - Direct Franklin India Opportunities Fund - Direct Franklin India Feeder - Franklin U S Opportunities Fund - Direct IDBI Small Cap Fund - Direct Sundaram SMILE Fund - Direct Franklin Build India Fund - Direct DSP Micro Cap Fund - Direct Franklin India Prima Fund - Direct Edelweiss Economic Resurgence Fund - Direct Franklin India Smaller Companies Fund - Direct Point 1 Bottom quartile AUM (₹954 Cr). Upper mid AUM (₹9,344 Cr). Upper mid AUM (₹5,800 Cr). Bottom quartile AUM (₹758 Cr). Lower mid AUM (₹3,922 Cr). Bottom quartile AUM (₹3,199 Cr). Highest AUM (₹20,221 Cr). Upper mid AUM (₹12,871 Cr). Lower mid AUM (₹3,613 Cr). Top quartile AUM (₹14,467 Cr). Point 2 Oldest track record among peers (13 yrs). Established history (13+ yrs). Established history (13+ yrs). Established history (9+ yrs). Established history (13+ yrs). Established history (13+ yrs). Established history (13+ yrs). Established history (13+ yrs). Established history (11+ yrs). Established history (13+ yrs). Point 3 Not Rated. Not Rated. Not Rated. Not Rated. Not Rated. Not Rated. Not Rated. Not Rated. Not Rated. Not Rated. Point 4 Risk profile: High. Risk profile: Moderately High. Risk profile: High. Risk profile: Moderately High. Risk profile: Moderately High. Risk profile: High. Risk profile: Moderately High. Risk profile: Moderately High. Risk profile: High. Risk profile: Moderately High. Point 5 5Y return: 10.62% (bottom quartile). 5Y return: 20.21% (top quartile). 5Y return: 10.30% (bottom quartile). 5Y return: 20.11% (upper mid). 5Y return: 18.93% (upper mid). 5Y return: 21.26% (top quartile). 5Y return: 19.81% (upper mid). 5Y return: 16.16% (lower mid). 5Y return: 14.93% (bottom quartile). 5Y return: 18.62% (lower mid). Point 6 3Y return: 24.86% (top quartile). 3Y return: 23.27% (top quartile). 3Y return: 23.10% (upper mid). 3Y return: 20.54% (upper mid). 3Y return: 19.64% (upper mid). 3Y return: 19.60% (lower mid). 3Y return: 19.55% (lower mid). 3Y return: 18.63% (bottom quartile). 3Y return: 16.70% (bottom quartile). 3Y return: 15.76% (bottom quartile). Point 7 1Y return: 45.97% (top quartile). 1Y return: 5.91% (lower mid). 1Y return: 19.33% (top quartile). 1Y return: 19.11% (upper mid). 1Y return: 18.31% (upper mid). 1Y return: 2.14% (bottom quartile). 1Y return: 18.86% (upper mid). 1Y return: 5.15% (bottom quartile). 1Y return: 5.30% (bottom quartile). 1Y return: 7.58% (lower mid). Point 8 Alpha: 0.00 (upper mid). Alpha: 0.98 (upper mid). Alpha: -2.76 (bottom quartile). Alpha: 5.50 (top quartile). Alpha: 6.43 (top quartile). Alpha: 0.00 (lower mid). Alpha: 0.00 (lower mid). Alpha: -4.87 (bottom quartile). Alpha: 2.34 (upper mid). Alpha: -2.12 (bottom quartile). Point 9 Sharpe: 1.30 (top quartile). Sharpe: 0.02 (lower mid). Sharpe: 0.53 (top quartile). Sharpe: 0.32 (upper mid). Sharpe: 0.35 (upper mid). Sharpe: -0.06 (bottom quartile). Sharpe: 0.34 (upper mid). Sharpe: -0.02 (bottom quartile). Sharpe: 0.11 (lower mid). Sharpe: -0.01 (bottom quartile). Point 10 Information ratio: 0.00 (upper mid). Information ratio: 1.39 (top quartile). Information ratio: -0.99 (bottom quartile). Information ratio: 0.15 (upper mid). Information ratio: 0.16 (upper mid). Information ratio: 0.00 (lower mid). Information ratio: 0.00 (lower mid). Information ratio: -0.19 (bottom quartile). Information ratio: 1.15 (top quartile). Information ratio: -0.40 (bottom quartile). Franklin Asian Equity Fund - Direct
Franklin India Opportunities Fund - Direct
Franklin India Feeder - Franklin U S Opportunities Fund - Direct
IDBI Small Cap Fund - Direct
Sundaram SMILE Fund - Direct
Franklin Build India Fund - Direct
DSP Micro Cap Fund - Direct
Franklin India Prima Fund - Direct
Edelweiss Economic Resurgence Fund - Direct
Franklin India Smaller Companies Fund - Direct
Best Regular Mutual Fund Plans
Investors who want to invest in mutual funds with regular plans, here are some of the best performing regular plans to invest in.
Fund NAV Net Assets (Cr) 3 MO (%) 6 MO (%) 1 YR (%) 3 YR (%) 5 YR (%) 2024 (%) DSP World Gold Fund Growth ₹63.9314
↑ 1.37 ₹1,441 12.8 -0.7 90.2 60.4 30.9 167.1 DSP US Flexible Equity Fund Growth ₹92.6933
↓ -0.72 ₹1,296 -1.7 18.2 41.5 27.1 18.2 33.8 Kotak Global Emerging Market Fund Growth ₹39.835
↑ 0.74 ₹1,663 2.1 14.7 49.4 26.4 13 39.1 LIC MF Infrastructure Fund Growth ₹55.3128
↓ -0.08 ₹1,145 5.3 9.7 13.6 24.6 22.7 -3.7 Invesco India Mid Cap Fund Growth ₹200.34
↑ 0.18 ₹14,721 9.8 11.4 8.7 24.4 20.4 6.3 Franklin Asian Equity Fund Growth ₹45.9636
↑ 0.31 ₹954 5.5 17.8 44.7 23.8 9.6 23.7 ICICI Prudential MidCap Fund Growth ₹348.73
↑ 0.77 ₹7,954 3.4 9 16.6 23.2 18.6 11.1 Invesco India Growth Opportunities Fund Growth ₹110.87
↓ -0.08 ₹11,746 10.9 11.8 7 23.2 17.6 4.7 SBI PSU Fund Growth ₹34.4925
↑ 0.15 ₹6,678 -0.8 -5.9 10.2 22.9 24.3 11.3 SBI Healthcare Opportunities Fund Growth ₹515.702
↓ -2.11 ₹5,400 9.6 22.5 17.9 22.9 18 -3.5 Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 20 Aug 26 Research Highlights & Commentary of 10 Funds showcased
Commentary DSP World Gold Fund DSP US Flexible Equity Fund Kotak Global Emerging Market Fund LIC MF Infrastructure Fund Invesco India Mid Cap Fund Franklin Asian Equity Fund ICICI Prudential MidCap Fund Invesco India Growth Opportunities Fund SBI PSU Fund SBI Healthcare Opportunities Fund Point 1 Lower mid AUM (₹1,441 Cr). Bottom quartile AUM (₹1,296 Cr). Lower mid AUM (₹1,663 Cr). Bottom quartile AUM (₹1,145 Cr). Highest AUM (₹14,721 Cr). Bottom quartile AUM (₹954 Cr). Upper mid AUM (₹7,954 Cr). Top quartile AUM (₹11,746 Cr). Upper mid AUM (₹6,678 Cr). Upper mid AUM (₹5,400 Cr). Point 2 Established history (18+ yrs). Established history (14+ yrs). Established history (18+ yrs). Established history (18+ yrs). Established history (19+ yrs). Established history (18+ yrs). Oldest track record among peers (21 yrs). Established history (19+ yrs). Established history (16+ yrs). Established history (21+ yrs). Point 3 Rating: 3★ (upper mid). Top rated. Rating: 3★ (upper mid). Not Rated. Rating: 2★ (lower mid). Rating: 5★ (top quartile). Rating: 2★ (lower mid). Rating: 5★ (upper mid). Rating: 2★ (bottom quartile). Rating: 2★ (bottom quartile). Point 4 Risk profile: High. Risk profile: High. Risk profile: High. Risk profile: High. Risk profile: Moderately High. Risk profile: High. Risk profile: Moderately High. Risk profile: Moderately High. Risk profile: High. Risk profile: High. Point 5 5Y return: 30.87% (top quartile). 5Y return: 18.16% (lower mid). 5Y return: 13.01% (bottom quartile). 5Y return: 22.67% (upper mid). 5Y return: 20.40% (upper mid). 5Y return: 9.65% (bottom quartile). 5Y return: 18.55% (upper mid). 5Y return: 17.60% (bottom quartile). 5Y return: 24.34% (top quartile). 5Y return: 18.01% (lower mid). Point 6 3Y return: 60.35% (top quartile). 3Y return: 27.13% (top quartile). 3Y return: 26.44% (upper mid). 3Y return: 24.64% (upper mid). 3Y return: 24.39% (upper mid). 3Y return: 23.77% (lower mid). 3Y return: 23.24% (lower mid). 3Y return: 23.17% (bottom quartile). 3Y return: 22.92% (bottom quartile). 3Y return: 22.87% (bottom quartile). Point 7 1Y return: 90.20% (top quartile). 1Y return: 41.52% (upper mid). 1Y return: 49.44% (top quartile). 1Y return: 13.58% (lower mid). 1Y return: 8.69% (bottom quartile). 1Y return: 44.70% (upper mid). 1Y return: 16.56% (lower mid). 1Y return: 6.96% (bottom quartile). 1Y return: 10.25% (bottom quartile). 1Y return: 17.93% (upper mid). Point 8 Alpha: 2.59 (upper mid). Alpha: -7.66 (bottom quartile). Alpha: -4.91 (bottom quartile). Alpha: 5.37 (top quartile). Alpha: 0.00 (lower mid). Alpha: 0.00 (lower mid). Alpha: 4.57 (top quartile). Alpha: 3.86 (upper mid). Alpha: -0.89 (bottom quartile). Alpha: 3.75 (upper mid). Point 9 Sharpe: 1.14 (upper mid). Sharpe: 1.40 (top quartile). Sharpe: 1.39 (top quartile). Sharpe: 0.28 (bottom quartile). Sharpe: 0.29 (lower mid). Sharpe: 1.27 (upper mid). Sharpe: 0.48 (lower mid). Sharpe: 0.23 (bottom quartile). Sharpe: 0.28 (bottom quartile). Sharpe: 0.71 (upper mid). Point 10 Information ratio: -0.56 (bottom quartile). Information ratio: 0.00 (upper mid). Information ratio: -0.62 (bottom quartile). Information ratio: 0.56 (upper mid). Information ratio: 0.00 (lower mid). Information ratio: 0.00 (lower mid). Information ratio: 0.73 (top quartile). Information ratio: 1.19 (top quartile). Information ratio: -0.34 (bottom quartile). Information ratio: 0.02 (upper mid). DSP World Gold Fund
DSP US Flexible Equity Fund
Kotak Global Emerging Market Fund
LIC MF Infrastructure Fund
Invesco India Mid Cap Fund
Franklin Asian Equity Fund
ICICI Prudential MidCap Fund
Invesco India Growth Opportunities Fund
SBI PSU Fund
SBI Healthcare Opportunities Fund
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