The Truth About Direct vs Regular Plans
Platforms like Groww and Kuvera claim you lose 1.5% every year by choosing a regular plan. We pulled live return data from our database and the real number is very different.
Avg 1Y Difference
0.61%
Direct return advantage
Avg 3Y Difference
0.68%
Direct return advantage
Avg 5Y Difference
0.73%
Direct return advantage
What they claim
1.5%
annual cost of regular plans
What our data shows
0.68%
actual 3Y return difference
Based on 651 live matched fund pairs · 3-year CAGR (annualised) · Data from AMFI
Why the Gap Is Smaller Than Advertised
The 1.5% claim treats Total Expense Ratio (TER) as a direct return penalty. That is not how fund performance works.
TER ≠ Return Gap
A fund's TER is deducted from the NAV daily, but the actual return difference between direct and regular plans depends on how each plan's portfolio performs — not just the fee difference in isolation.
Portfolio Composition Varies
Direct and regular versions of the same fund are legally identical portfolios, but small timing differences in flows can create minor NAV divergence that is unrelated to the expense ratio.
Survivorship & Data Bias
Published comparisons often cherry-pick high-AUM equity funds where TER gaps are widest. Debt, hybrid, and index funds have much smaller differences — sometimes under 0.2%.
479
fund pairs with 3Y difference < 1%
172
fund pairs with 3Y difference ≥ 1%
Top 20 Fund Pairs by Return Difference
Sorted by 3-year CAGR gap (direct minus regular). Higher gap = more advantage in the direct plan for that specific fund.
| # | Fund | Regular 3Y | Direct 3Y | 3Y Gap |
|---|---|---|---|---|
| 1 | ITI Mid Cap Fund- Growth Option ITI Mutual Fund | +20.07% | +22.19% | +2.12% |
| 2 | ITI ELSS Tax Saver Fund- Growth Option ITI Mutual Fund | +13.93% | +16.01% | +2.08% |
| 3 | Navi ELSS Tax Saver Fund- Growth Option Navi Mutual Fund | +8.69% | +10.77% | +2.08% |
| 4 | ITI Large Cap Fund- Growth Option ITI Mutual Fund | +9.37% | +11.44% | +2.07% |
| 5 | JM Midcap Fund (Regular) - Growth JM Financial Mutual Fund | +19.57% | +21.63% | +2.06% |
| 6 | Navi Large & Midcap Fund- Growth Option Navi Mutual Fund | +9.07% | +11.12% | +2.05% |
| 7 | ITI Flexi Cap Fund- Growth ITI Mutual Fund | +17.24% | +19.26% | +2.02% |
| 8 | Navi Flexi Cap Fund- Growth Navi Mutual Fund | +9.91% | +11.91% | +2.01% |
| 9 | ITI Multi Cap Fund- Growth Option ITI Mutual Fund | +16.15% | +18.09% | +1.94% |
| 10 | WhiteOak Capital ELSS Tax Saver Fund Regular Plan Growth WhiteOak Capital Mutual Fund | +16.25% | +18.19% | +1.93% |
| 11 | WhiteOak Capital Large Cap Fund Regular Plan Growth WhiteOak Capital Mutual Fund | +13.67% | +15.56% | +1.90% |
| 12 | BANDHAN TRANSPORTATION AND LOGISTICS FUND - GROWTH Bandhan Mutual Fund | +20.39% | +22.28% | +1.89% |
| 13 | Mahindra Manulife Flexi Cap Fund-Growth Mahindra Manulife Mutual Fund | +11.90% | +13.78% | +1.88% |
| 14 | LIC MF Multi Cap Fund-Growth LIC Mutual Fund | +16.14% | +18.01% | +1.88% |
| 15 | WhiteOak Capital Mid Cap Fund Regular Plan Growth WhiteOak Capital Mutual Fund | +22.81% | +24.68% | +1.87% |
| 16 | Shriram Flexi Cap Fund Shriram Mutual Fund | +7.44% | +9.26% | +1.82% |
| 17 | Edelweiss Focused Fund- Growth Edelweiss Mutual Fund | +13.30% | +15.11% | +1.82% |
| 18 | BANDHAN MIDCAP FUND - GROWTH Bandhan Mutual Fund | +17.14% | +18.94% | +1.80% |
| 19 | Edelweiss Flexi Cap Fund- Growth Option Edelweiss Mutual Fund | +15.00% | +16.78% | +1.78% |
| 20 | BANK OF INDIA Manufacturing & Infrastructure Fund-Growth Bank of India Mutual Fund | +22.44% | +24.22% | +1.78% |
Showing top 20 of 651 matched pairs sorted by 3Y CAGR difference (direct − regular). Returns are CAGR (annualised). Data sourced from AMFI, updated daily. Past performance is not indicative of future results.
What a 0.5% Gap Does Not Tell You
Even if direct plans save you 0.5–0.8% per year, the real question is: what do you lose when there is no advisor watching your portfolio?
Fund Selection That Matches Your Goals
Most investors in direct plans pick funds based on past performance. A qualified MFD builds a portfolio around your specific risk profile, horizon, and tax situation.
Behavioural Coaching at Market Lows
Data shows investors in direct plans are 3× more likely to panic-redeem during market corrections. Staying invested through volatility is worth far more than 0.5% per year.
Annual Portfolio Reviews and Rebalancing
Asset allocation drifts over time. Without regular rebalancing, a 60/40 equity-debt split can become 80/20 without you noticing — until the next downturn.
26+ Years of Qualified Advisory Experience
Our AMFI-registered MFD has guided investors through multiple market cycles — the 2008 crash, 2020 COVID drop, and the rate volatility of 2022–23.
AMFI-Registered MFD
Regulated by AMFI and SEBI. All advice is compliant, documented, and in your interest — not commission-driven product pushing.
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Onboard and invest from anywhere in India. KYC, SIP setup, and portfolio tracking — all online through the MFU platform.
Data-Driven, Not Sales-Driven
We publish the real return differences between direct and regular plans — including the ones where direct wins significantly. Transparency is our core value.
Frequently Asked Questions
How is this data calculated?
We match regular and direct growth plans of the same fund by stripping "Direct / Regular Plan" from scheme names and grouping by fund house. For each matched pair we compute the CAGR difference directly from the 1Y, 3Y, and 5Y return fields stored in our database, which are sourced daily from AMFI / mfapi.in. No models, no projections — just raw NAV-derived numbers.
Does this mean regular plans are always better?
No. Direct plans are genuinely better for self-directed investors who have the time, knowledge, and discipline to manage their own portfolio. Our argument is simply that the cost difference is smaller than advertised, and guided investing through a qualified MFD delivers value that more than compensates for it for most retail investors.
Why do Groww and Kuvera show 1.5%?
The 1.5% figure is based on Total Expense Ratio (TER) differences between typical direct and regular equity funds. TER is a real cost — it is deducted daily from NAV. But the gap between observed returns is lower because (a) not all funds have a 1.5% TER gap, (b) debt and hybrid funds have much smaller gaps, and (c) portfolio drift and flow timing add noise to raw NAV comparisons.
Are the returns shown CAGR or absolute?
All returns on this page are CAGR (Compound Annual Growth Rate) — annualised figures. A "3Y return" of 14% means the fund has compounded at 14% per year over three years.
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Disclaimer: Mutual fund investments are subject to market risks. Past performance is not indicative of future results. Return data is sourced from AMFI and updated daily. Differences shown are historical CAGR comparisons and not a guarantee of future performance. MFGenie is an AMFI-registered Mutual Fund Distributor. ARN registration details available on request.