+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 India Opportunities Fund - Direct Growth ₹285.986
↑ 0.72 ₹8,380 -1.3 3.6 17.3 30.8 21 4.4 Franklin Build India Fund - Direct Growth ₹172.251
↑ 0.71 ₹3,036 1.9 7.1 24.2 29.2 25 4.8 Franklin India Prima Fund - Direct Growth ₹3,118.93
↑ 9.51 ₹12,831 -2.6 3 16 23.5 17.8 2.4 Sundaram SMILE Fund - Direct Growth ₹288.895
↑ 3.04 ₹3,401 -2.9 3.7 21 21.9 21.7 1.5 DSP Micro Cap Fund - Direct Growth ₹216.144
↑ 1.05 ₹16,935 -1.9 2.8 18.7 21.5 21.7 -1.9 Franklin India Feeder - Franklin U S Opportunities Fund - Direct Growth ₹88.4121
↓ 0.00 ₹4,465 -0.8 -0.6 1.3 21.1 9 12.4 Edelweiss Economic Resurgence Fund - Direct Growth ₹45.993
↑ 0.09 ₹3,127 -0.3 6.3 17.7 20.9 17.3 7 Franklin India Smaller Companies Fund - Direct Growth ₹186.256
↑ 0.88 ₹13,238 -4.8 -0.7 10.9 20.3 20.9 -7.6 Franklin India Prima Plus - Direct Growth ₹1,852.73
↑ 1.92 ₹19,972 -1.3 3 13 19.8 16.7 4.1 UTI Banking Sector Fund - Direct Growth ₹234.828
↑ 0.49 ₹1,382 3.4 10.3 26.4 19.7 13.9 17.5 Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 16 Feb 26 Research Highlights & Commentary of 10 Funds showcased
Commentary Franklin India Opportunities Fund - Direct Franklin Build India Fund - Direct Franklin India Prima Fund - Direct Sundaram SMILE Fund - Direct DSP Micro Cap Fund - Direct Franklin India Feeder - Franklin U S Opportunities Fund - Direct Edelweiss Economic Resurgence Fund - Direct Franklin India Smaller Companies Fund - Direct Franklin India Prima Plus - Direct UTI Banking Sector Fund - Direct Point 1 Upper mid AUM (₹8,380 Cr). Bottom quartile AUM (₹3,036 Cr). Upper mid AUM (₹12,831 Cr). Lower mid AUM (₹3,401 Cr). Top quartile AUM (₹16,935 Cr). Lower mid AUM (₹4,465 Cr). Bottom quartile AUM (₹3,127 Cr). Upper mid AUM (₹13,238 Cr). Highest AUM (₹19,972 Cr). Bottom quartile AUM (₹1,382 Cr). Point 2 Oldest track record among peers (13 yrs). Established history (13+ 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). Established history (13+ 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: Moderately High. Risk profile: High. Risk profile: Moderately High. Risk profile: Moderately High. Risk profile: Moderately High. Risk profile: High. Risk profile: High. Risk profile: Moderately High. Risk profile: Moderately High. Risk profile: High. Point 5 5Y return: 21.01% (upper mid). 5Y return: 24.98% (top quartile). 5Y return: 17.80% (lower mid). 5Y return: 21.68% (top quartile). 5Y return: 21.66% (upper mid). 5Y return: 9.03% (bottom quartile). 5Y return: 17.32% (lower mid). 5Y return: 20.90% (upper mid). 5Y return: 16.74% (bottom quartile). 5Y return: 13.89% (bottom quartile). Point 6 3Y return: 30.84% (top quartile). 3Y return: 29.19% (top quartile). 3Y return: 23.45% (upper mid). 3Y return: 21.89% (upper mid). 3Y return: 21.54% (upper mid). 3Y return: 21.06% (lower mid). 3Y return: 20.89% (lower mid). 3Y return: 20.30% (bottom quartile). 3Y return: 19.76% (bottom quartile). 3Y return: 19.72% (bottom quartile). Point 7 1Y return: 17.30% (lower mid). 1Y return: 24.22% (top quartile). 1Y return: 16.01% (lower mid). 1Y return: 20.99% (upper mid). 1Y return: 18.68% (upper mid). 1Y return: 1.29% (bottom quartile). 1Y return: 17.69% (upper mid). 1Y return: 10.91% (bottom quartile). 1Y return: 13.05% (bottom quartile). 1Y return: 26.38% (top quartile). Point 8 Alpha: -3.02 (lower mid). Alpha: 0.00 (top quartile). Alpha: -3.51 (bottom quartile). Alpha: 5.06 (top quartile). Alpha: 0.00 (upper mid). Alpha: -9.04 (bottom quartile). Alpha: -0.72 (upper mid). Alpha: -4.40 (bottom quartile). Alpha: -3.35 (lower mid). Alpha: -1.71 (upper mid). Point 9 Sharpe: -0.02 (upper mid). Sharpe: 0.01 (upper mid). Sharpe: -0.12 (bottom quartile). Sharpe: -0.11 (lower mid). Sharpe: -0.22 (bottom quartile). Sharpe: 0.41 (top quartile). Sharpe: 0.13 (upper mid). Sharpe: -0.56 (bottom quartile). Sharpe: -0.07 (lower mid). Sharpe: 0.83 (top quartile). Point 10 Information ratio: 1.88 (top quartile). Information ratio: 0.00 (lower mid). Information ratio: -0.16 (bottom quartile). Information ratio: 0.01 (upper mid). Information ratio: 0.00 (lower mid). Information ratio: -1.86 (bottom quartile). Information ratio: 1.51 (top quartile). Information ratio: -0.11 (bottom quartile). Information ratio: 0.86 (upper mid). Information ratio: 0.44 (upper mid). Franklin India Opportunities Fund - Direct
Franklin Build India Fund - Direct
Franklin India Prima Fund - Direct
Sundaram SMILE Fund - Direct
DSP Micro Cap Fund - Direct
Franklin India Feeder - Franklin U S Opportunities Fund - Direct
Edelweiss Economic Resurgence Fund - Direct
Franklin India Smaller Companies Fund - Direct
Franklin India Prima Plus - Direct
UTI Banking Sector 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 ₹62.625
↓ -0.10 ₹1,756 34.3 83.1 153 55.4 28.2 167.1 SBI PSU Fund Growth ₹36.5276
↑ 0.18 ₹5,817 6.8 17.1 33.3 34.1 28.3 11.3 Invesco India PSU Equity Fund Growth ₹68.34
↑ 0.60 ₹1,449 1.9 10.3 31.4 31.8 26.5 10.3 Franklin India Opportunities Fund Growth ₹257.39
↑ 0.63 ₹8,380 -1.6 3 15.8 29.3 19.8 3.1 LIC MF Infrastructure Fund Growth ₹50.3658
↑ 0.41 ₹1,003 -0.3 4.6 24.3 28.7 23.3 -3.7 Franklin Build India Fund Growth ₹148.907
↑ 0.61 ₹3,036 1.7 6.5 23 27.8 23.7 3.7 Invesco India Mid Cap Fund Growth ₹182.14
↑ 0.42 ₹10,296 -2.4 1.5 24.8 27.5 21 6.3 HDFC Infrastructure Fund Growth ₹47.818
↑ 0.18 ₹2,452 -1.9 1.4 17.3 27.3 23.8 2.2 Nippon India Power and Infra Fund Growth ₹352.934
↑ 1.19 ₹7,117 -0.9 4.4 19.8 26.4 23.8 -0.5 HDFC Mid-Cap Opportunities Fund Growth ₹204.504
↑ 1.34 ₹92,642 -0.2 7 21.6 26.1 23 6.8 Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 13 Feb 26 Research Highlights & Commentary of 10 Funds showcased
Commentary DSP World Gold Fund SBI PSU Fund Invesco India PSU Equity Fund Franklin India Opportunities Fund LIC MF Infrastructure Fund Franklin Build India Fund Invesco India Mid Cap Fund HDFC Infrastructure Fund Nippon India Power and Infra Fund HDFC Mid-Cap Opportunities Fund Point 1 Bottom quartile AUM (₹1,756 Cr). Upper mid AUM (₹5,817 Cr). Bottom quartile AUM (₹1,449 Cr). Upper mid AUM (₹8,380 Cr). Bottom quartile AUM (₹1,003 Cr). Lower mid AUM (₹3,036 Cr). Top quartile AUM (₹10,296 Cr). Lower mid AUM (₹2,452 Cr). Upper mid AUM (₹7,117 Cr). Highest AUM (₹92,642 Cr). Point 2 Established history (18+ yrs). Established history (15+ yrs). Established history (16+ yrs). Oldest track record among peers (26 yrs). Established history (17+ yrs). Established history (16+ yrs). Established history (18+ yrs). Established history (17+ yrs). Established history (21+ yrs). Established history (18+ yrs). Point 3 Rating: 3★ (upper mid). Rating: 2★ (bottom quartile). Rating: 3★ (upper mid). Rating: 3★ (upper mid). Not Rated. Top rated. Rating: 2★ (bottom quartile). Rating: 3★ (lower mid). Rating: 4★ (top quartile). Rating: 3★ (lower mid). Point 4 Risk profile: High. Risk profile: High. Risk profile: High. Risk profile: Moderately High. Risk profile: High. Risk profile: High. Risk profile: Moderately High. Risk profile: High. Risk profile: High. Risk profile: Moderately High. Point 5 5Y return: 28.18% (top quartile). 5Y return: 28.26% (top quartile). 5Y return: 26.47% (upper mid). 5Y return: 19.84% (bottom quartile). 5Y return: 23.32% (lower mid). 5Y return: 23.70% (lower mid). 5Y return: 21.05% (bottom quartile). 5Y return: 23.79% (upper mid). 5Y return: 23.80% (upper mid). 5Y return: 22.98% (bottom quartile). Point 6 3Y return: 55.43% (top quartile). 3Y return: 34.12% (top quartile). 3Y return: 31.84% (upper mid). 3Y return: 29.31% (upper mid). 3Y return: 28.66% (upper mid). 3Y return: 27.85% (lower mid). 3Y return: 27.45% (lower mid). 3Y return: 27.31% (bottom quartile). 3Y return: 26.37% (bottom quartile). 3Y return: 26.12% (bottom quartile). Point 7 1Y return: 153.01% (top quartile). 1Y return: 33.26% (top quartile). 1Y return: 31.42% (upper mid). 1Y return: 15.85% (bottom quartile). 1Y return: 24.31% (upper mid). 1Y return: 22.96% (lower mid). 1Y return: 24.78% (upper mid). 1Y return: 17.31% (bottom quartile). 1Y return: 19.84% (bottom quartile). 1Y return: 21.56% (lower mid). Point 8 Alpha: 1.32 (top quartile). Alpha: -0.22 (lower mid). Alpha: -1.90 (lower mid). Alpha: -4.27 (bottom quartile). Alpha: -18.43 (bottom quartile). Alpha: 0.00 (upper mid). Alpha: 0.00 (upper mid). Alpha: 0.00 (upper mid). Alpha: -15.06 (bottom quartile). Alpha: 0.63 (top quartile). Point 9 Sharpe: 3.42 (top quartile). Sharpe: 0.33 (top quartile). Sharpe: 0.27 (upper mid). Sharpe: -0.10 (lower mid). Sharpe: -0.21 (bottom quartile). Sharpe: -0.05 (lower mid). Sharpe: 0.11 (upper mid). Sharpe: -0.12 (bottom quartile). Sharpe: -0.20 (bottom quartile). Sharpe: 0.12 (upper mid). Point 10 Information ratio: -0.67 (bottom quartile). Information ratio: -0.47 (bottom quartile). Information ratio: -0.37 (bottom quartile). Information ratio: 1.69 (top quartile). Information ratio: 0.28 (upper mid). Information ratio: 0.00 (upper mid). Information ratio: 0.00 (lower mid). Information ratio: 0.00 (lower mid). Information ratio: 0.34 (upper mid). Information ratio: 0.44 (top quartile). DSP World Gold Fund
SBI PSU Fund
Invesco India PSU Equity Fund
Franklin India Opportunities Fund
LIC MF Infrastructure Fund
Franklin Build India Fund
Invesco India Mid Cap Fund
HDFC Infrastructure Fund
Nippon India Power and Infra Fund
HDFC Mid-Cap Opportunities Fund
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