Every open-ended mutual fund scheme comes in two variants: Direct and Regular. The underlying portfolio is identical — same fund manager, same holdings, same strategy. What differs is the expense ratio: Direct plans exclude distributor commission, Regular plans include it. Over long periods, this shows up as a small but compounding difference in NAV.
That doesn't make Regular automatically the worse choice. Direct plans require the investor to handle scheme research, KYC, nomination changes and ongoing servicing entirely alone. Regular plans bundle a distributor's support into that marginally higher cost.
Which is "better" depends on how much that support is worth to you against the cost difference — not a universal answer that applies to every investor the same way.
This article is for general education only and does not constitute investment advice or a recommendation for any specific scheme. Mutual fund investments are subject to market risks.
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