Digit
headset_mic account_circle
mail
Sign In
  • Products

    Motor

    • Car Insurance
    • Two Wheeler/Bike Insurance
    • Commercial Vehicle Insurance
    • Taxi/Cab Insurance
    • Auto Rickshaw Insurance
    • Truck Insurance

    Health

    • Health Insurance
    • Super Top-up Health Insurance
    • Arogya Sanjeevani Policy
    • Corporate Health Insurance
    • Health Insurance Portability

    Other

    • International Travel Insurance
    • Flight Delay
    • Shop Insurance
    • Home Insurance
  • Claims

    • File a Claim
    • File Health Claim
    • File Motor Claim for Garages
    • COVID-19 Assistance
    • Claim Status
  • Renewals
  • Become an Agent
  • Digit Products

    Motor Insurance

    • Car Insurance 25% OFF
    • Two Wheeler/Bike Insurance
    • Commercial Vehicle Insurance
    • Taxi/Cab Insurance 15% OFF
    • Auto Rickshaw Insurance
    • Truck Insurance

    Health Insurance

    • Health Insurance
    • Super Top-Up Health Insurance
    • OPD Health Insurance
    • Arogya Sanjeevani Policy
    • Personal Accident Insurance
    • Corporate Health Insurance

    Other Insurance

    • International Travel Insurance
    • Flight Delay
    • Shop Insurance
    • Home Insurance
  • Claims

    File a Claim

    File Health Claim

    File Motor Claim for Garages

    COVID-19 Assistance

    Claim Status

  • Renewals

    Become an Agent

  • Support
    Sign In
    • edit Edit Policy
    • download Download Policy
    • person_pin My Service Requests
    • check Check Policy Status
    call 1800-258-5956 mail_outline hello@godigit.com whatsapp 70260 61234

    Our WhatsApp number cannot be used for calls. This is a chat only number.

  • My Account
    account_circle
    • autorenew Renew My Policy
    • download Download My Policy
    logout SIGN OUT
    call 1800-258-5956 mail_outline hello@godigit.com whatsapp 70260 61234

    Our WhatsApp number cannot be used for calls. This is a chat only number.

  • login
  • about
  • contact
  • careers
More Products

Motor

  • Car Insurance
  • Two Wheeler/Bike Insurance
  • Commercial Vehicle Insurance
  • Taxi/Cab Insurance
  • Auto Rickshaw Insurance
  • Truck Insurance

Health

  • Health Insurance
  • Super Top-up Health Insurance
  • Arogya Sanjeevani Policy
  • Corporate Health Insurance
  • Health Insurance Portability

Other

  • International Travel Insurance
  • Flight Delay
  • Shop Insurance
  • Home Insurance

Support

close
account_circle
  • edit Edit Policy
  • download Download Policy
  • person_pin My Service Requests
  • check Check Policy Status
  • autorenew Renew My Policy
  • download Download My Policy
logout SIGN OUT
call 1800-258-5956 mail_outline hello@godigit.com whatsapp 70260 61234

Our WhatsApp number cannot be used for calls. This is a chat only number.

Do the Digit Insurance

Trusted by 3 Crore+ Indians

  • Health
    Health
  • Pay as you Drive
    Car Side View
    Car
  • trending icon

    Third-party premium has changed from 1st June. Renew now

    Motorcycle Side View
    Bike
  • auto rikshaw
    Commercial
  • Covers COVID-19
    Travel Airplane
    Travel
  • More products
    More
ENTER YOUR CAR NUMBER
keyboard_arrow_right
DON'T KNOW YOUR CAR NUMBER?
keyboard_arrow_right
renew digit policy keyboard_arrow_right

I agree to the  Terms & Conditions

{{(!carWheelerCtrl.registrationNumberCardShow || carWheelerCtrl.localStorageValues.vehicle.isVehicleNew) ? 'I know my Reg num' : 'Don’t have Reg num?'}}
keyboard_arrow_right
It’s a brand new Car
keyboard_arrow_right
renew digit policy keyboard_arrow_right

I agree to the  Terms & Conditions

Terms and conditions

    false false
    Enter valid registration number
    DON'T KNOW REGISTRATION NUMBER?
    keyboard_arrow_right
    I KNOW MY REGISTRATION NUMBER
    keyboard_arrow_right
    IT'S A NEW BIKE
    keyboard_arrow_right
    RENEW DIGIT POLICY
    keyboard_arrow_right

    I agree to the  Terms & Conditions

    Continue with {{bikeCtrl.lastVisitedData.lastVisitedUrl.indexOf('DigitPaymentGateway/payments') !== -1 ? 'payment completion': 'previous choice'}}

    {{bikeCtrl.lastVisitedData.vehicle.makeModel | toTitleCase}} {{bikeCtrl.lastVisitedData.vehicle.variant? (bikeCtrl.lastVisitedData.vehicle.variant|toTitleCase): (bikeCtrl.lastVisitedData.vehicleCharacteristics.vehicleType | toTitleCase)}}

    {{bikeCtrl.lastVisitedData.vehicle.licensePlateNumber}}

    {{bikeCtrl.selectedPlanDisplay[bikeCtrl.lastVisitedData.dropOffSelectedPlan? bikeCtrl.lastVisitedData.dropOffSelectedPlan: bikeCtrl.lastVisitedData.selectedPlan]}}

    -

    ₹{{((bikeCtrl.lastVisitedData.dropOffSelectedPlan ? bikeCtrl.lastVisitedData.dropOffGrossPremium:bikeCtrl.lastVisitedData.chosePlan.grossPremium) .replace('INR ','')).split('.')[0] | rupeeFormatWithComma}} (Incl 18% GST)

    keyboard_arrow_right
    IT'S A NEW BIKE
    keyboard_arrow_right
    RENEW DIGIT POLICY
    keyboard_arrow_right

    I agree to the  Terms & Conditions

    Continue with {{twoWheelerCtrl.lastVisitedData.lastVisitedUrl.indexOf('DigitPaymentGateway/payments') !== -1 ? 'payment completion': 'previous choice'}}

    {{twoWheelerCtrl.lastVisitedData.vehicle.make |toTitleCase}} {{twoWheelerCtrl.lastVisitedData.vehicle.model | toTitleCase}} {{twoWheelerCtrl.lastVisitedData.vehicle.variant? (twoWheelerCtrl.lastVisitedData.vehicle.variant |toTitleCase):''}}

    {{twoWheelerCtrl.lastVisitedData.vehicle.licensePlateNumber}}

    {{twoWheelerCtrl.lastVisitedData.selectedPlan}}

    -

    ₹{{((twoWheelerCtrl.lastVisitedData.quickQuoteResponse.plans[twoWheelerCtrl.lastVisitedData.selectedPlan].resposeBody.grossPremium) .replace('INR ', '')).split('.')[0] | rupeeFormatWithComma}} (Incl 18% GST)

    • Geography
    • Country
    {{geography.name}}

    Popular Countries (You can select more thane one)

    • {{country}}

    DONE
    Please select geography

    I agree to the  Terms & Conditions

    As mandated by Spanish Authorities your travel insurance needs to extend 15 days after your trip ends.
    We will extend your coverage period accordingly.

    false false false false false false false false false false false false

    Port my existing Policy

    keyboard_arrow_right
    or renew digit policy keyboard_arrow_right
    Chat with an expert

    I agree to the  Terms & Conditions

    You can select more than one member

    • -+ Max kids
      (s)
    ENTER YOUR REGISTRATION NUMBER
    keyboard_arrow_right
    DON'T KNOW YOUR REGISTRATION NUMBER
    keyboard_arrow_right
    or renew digit policy keyboard_arrow_right

    I agree to the  Terms & Conditions

    Terms and conditions

    Terms and conditions

    Do the Digit Insurance
    • Health
    • Car
    • Bike
    • Commercial
    • Travel
    • More Products

    Difference Between Direct and Regular Mutual Funds Explained

    direct and regular funds
    (Source: etmoney.com)

    Instances are not rare, whereby the first-time investors struggle to select between direct and regular funds for investment. It is one of the first decisions you need to make before investing. However, you need to understand the difference between direct and regular mutual funds to select a suitable plan for your investment portfolio.

    Are you confused between direct and regular funds in your investment process? Read on!

    What Are Direct Mutual Funds?

    A direct mutual fund refers to a mutual fund that is offered directly by Asset Management Companies or fund houses. It does not require any third parties or intermediaries in this process, such as brokers or distributors of a fund. This means that no commission or brokerage fees are associated with such funds.

    Hence, the expense ratio of a mutual fund direct plan is relatively lower. Returns will be automatically higher in such funds because of the lower expense ratio.

    What Are Regular Mutual Funds?

    Regular mutual funds involve intermediaries in the process. Investors take the help of brokers, distributors or advisors while investing in such funds. They are unsure of their capabilities and try to take expert help in their investment procedure. The fund houses need to pay certain charges to these intermediaries for selling their funds, which they recover from the investors in an expense ratio.

    The expense ratio is higher for the investors, thereby generating comparatively lower returns than direct funds. This can be a significant difference between direct and regular mutual funds. Therefore, regular funds are more convenient for new investors as it allows expert opinions.

    What Are the Differences Between Direct and Regular Mutual Funds?

     

    In 2012, SEBI introduced direct plans, enabling experienced investors to purchase funds directly without involving intermediaries. The fund manager manages direct and regular mutual funds, investing in similar assets. However, from the following table, one can observe the significant difference between direct and regular mutual funds.

    Comparison Factors

    Direct Fund

    Regular Fund

    Intermediaries’ Involvement

    Investors can avail such funds directly from the fund houses and AMCs without involving third parties or intermediaries.

    Investors need to involve third parties and use their expert opinions and advice before investing in any fund.

    Expense Ratio

    TER (Total Expense Ratio) is comparatively lower. It is mainly because the charges of intermediaries hardly apply in such funds.

    TER is higher since the charges of brokers, advisors, and other intermediaries will apply to investors.

    Returns

    The returns are usually higher. The TER is lower without involving third-party charges. The difference between the returns in direct and regular plans can be 0.5%-1%.

    Similarly, the returns will be lower since the charges of intermediaries are applicable in the TER. The direct plan generates 1% CAGR if the TER of a regular plan is 0.75% more than a direct plan.

    NAV

    The TER of any mutual fund is decided from its Net Asset Value (NAV). Since its TER is lower, direct funds have comparatively higher NAV.

    The NAV of a regular plan is relatively lower than that of a direct fund. The TER is higher in such funds.

    Market Research

    The entire market research is to be conducted by the investors. They do not receive any help from anyone in this regard.

    In such plans, an investor can receive help from third party advisors and brokers. Based on the information they put forward, an investor makes decisions.

    Financial Advice

    Investors do not receive any advice or support regarding the financial requirements. They need to do everything by themselves.

    Investors can take advice from brokers and advisors. They can enhance their financial decisions with their expert opinions.

    Thus, the regular VS direct mutual fund concept shows an array of differences between these two. While both are bottom-line requirements for mutual funds, investors need to acknowledge the significant differences between them simply out of the presence and absence of intermediaries.

    Which Is Better Between Direct and Regular Mutual Funds?

    As you can see, identifying the differences between regular and direct mutual funds is vital before making investment decisions. However, an investor might wonder about the right plan to opt for. Consider the below-mentioned points before deciding.

    • Professional Advice: New investors often struggle to make financial decisions because of a lack of market knowledge. In this regard, regular plans can be helpful. These enable investors to receive advice and opinions from market experts, and they can make their decisions based on these. This way, they can avoid making mistakes by taking professional advice. Such ideas can also help them earn higher returns.
    • Convenience: This factor comes hand-in-hand with professional advice. When comparing direct growth VS regular growth, the latter is more convenient. It enables investors to remain on the back foot, with the intermediaries responsible for making significant decisions. Therefore, the investment process becomes more suitable for investors in regular plans.
    • Expense Ratio: A significant aspect of mutual fund investment rests with its expense ratio. In this context, the direct plans are more favourable as per the list of differences between direct and regular mutual funds. These plans do not require involving the intermediaries. As a result, the charges of such intermediaries are not included in the expense ratio.
    • Investment Returns: This factor is again directly connected to the expense ratio. Direct plans offer higher returns, making it preferable for experienced investors. Investors complete the investment procedure without intermediaries, avoiding their charges. As a result, returns are comparatively higher in direct plans.
    • Value-added Services: Intermediaries often provide several value-added services in regular funds. They maintain investment records, offer tax proofs to tax filing, work on redemption facilitations, etc. These are often useful for inexperienced investors, who hardly have much financial knowledge. On the other hand, such services are not present in direct plans.

    Now that you know the differences between direct and regular mutual funds, choose the one you are comfortable with. While direct plans can be convenient for experienced investors, regular plans support new and inexperienced ones.

    Frequently Asked Questions

    How will I know if I have invested in a Direct or Regular Plan?

    You will find information regarding this on the account statement of your mutual fund scheme. The word "Direct" will be printed if you have a direct plan.

    You will find information regarding this on the account statement of your mutual fund scheme. The word "Direct" will be printed if you have a direct plan.

    Can I switch from a regular to a direct plan?

    You can log in to your mutual fund account and opt for the "switch" option on the transaction page. Otherwise, you can visit your nearest fund branch and submit a switching form for this.

    You can log in to your mutual fund account and opt for the "switch" option on the transaction page. Otherwise, you can visit your nearest fund branch and submit a switching form for this.

    Please try one more time!

    Request URL:
    Status Code:
    Request Payload:
    Response Data:

    Important Articles about Investment Related Topics

    Income Fund

    Unit Linked Insurance Plan ULIP

    ELSS Mutual Funds

    Equity Mutual Funds

    SIP vs Lumpsum Investments in Mutual Funds

    Lumpsum Investment in Mutual Funds

    What is SIP in Mutual Funds

    Hybrid Mutual Funds

    Balanced Mutual Funds

    Money Market Funds

    Debt Funds

    ULIP vs Mutual Funds

    What Are Mutual Funds?

    What Are Index Mutual Funds?

    What Are Growth Mutual Funds?

    Capital Protection Mutual Funds

    Commodity Mutual Funds

    Exchange-Traded Funds

    Difference between ETF vs Mutual Funds

    Difference Between Direct and Regular Mutual Funds

    Statutory Liquidity Ratio (SLR)

    Different Types of Mutual Funds in India

    Leveraged Funds

    International Mutual Funds

    Differences Between ETF and FOF

    What is Lock-in Period in Mutual Funds?

    Interval Mutual Funds

    Types of Mutual Fund Returns

    What is XIRR in Mutual Funds

    What Are Smallcase Funds?

    Difference Between Mutual Fund and Insurance

    Multi Cap Funds

    Show more

    Important Articles related to Finance

    Employee Provident Fund

    EPF Registration Process

    How to Withdraw EPF Online

    Atal Pension Yojana Calculator

    How to Change Details in Atal Pension Yojana Scheme

    How to get Atal Pension Yojana Statement

    How to Close Atal Pension Yojana Account

    Sukanya Samriddhi Yojana

    How to Open Sukanya Samriddhi Yojana Account

    Sukanya Samriddhi Yojana Calculator

    What is Public Provident Fund?

    How to Open PPF Account?

    How to Check PPF Account Balance?

    Eligibility Criteria to Open PPF Account

    Types of PPF Forms

    How to Withdraw PPF Online?

    How to Invest in PPF?

    Financial Planning for Salaried Employees

    Importance of Financial Planning

    Financial Planning Tips for Women

    How to Apply for Atal Pension Yojana?

    What is UAN Number?

    How to check EPF Balance

    KVP Calculator

    Voluntary Provident Fund

    Difference between EPF and EPS

    How to Check Sukanya Samriddhi Account Balance?

    Investment Planning Guides

    Professional Tax in India

    Show more

    Disclaimer: This information is added only for informative purposes and collected from different sources across the Internet. Digit Insurance is not promoting or recommending anything here. Please verify the information before making any decisions.

    Download Digit App

    close
    1. Digit Insurance
    2. Finance
    3. Investment Planning & Other Important Information
    4. Direct and Regular Mutual Fund

    Last updated: 2023-03-23

    Digit
    • about
    • contact
    • career
    Products
    • Car Insurance
    • Bike Insurance
    • Travel Insurance
    • Health Insurance
    • Property Insurance
    • Shop Insurance
    • Group Health Insurance
    • Arogya Sanjeevani Policy
    • Commercial Vehicle Insurance
    • Super Top-up Health Insurance
    • Flight Delay
    Resources
    • Blog
    • Press
    • Download Policy
    • Grievance Redressal Procedure
    • Cancel e-Mandate
    Agent & Partnerships
    • Become an Agent
    • Become Digit POSP
    • Garages claim intimation
    Services
    • Claims
    • Renewals
    • Digit Cashless Garages
    • Digit Cashless Hospitals
    Get our app
    Download man
    App Store Google Play

    Other Products
    • Fire Insurance
    • Burglary Insurance
    • Building Insurance
    • Bus Insurance
    • Tractor Insurance
    • Commercial Van Insurance
    • Passenger Carrying Vehicle Insurance
    • Heavy Vehicle Insurance
    • Goods Carrying Vehicle Insurance
    • Activa Insurance
    • Jupiter Insurance
    • Bullet Insurance
    • Student Travel Insurance
    • Schengen Visa Travel Insurance
    Health Insurance Guides
    • Individual Health Insurance
    • Family Health Insurance
    • Health Insurance for Parents
    • Health Insurance Premium Calculator
    • Compare Health Insurance
    • Health Insurance for Senior Citizens
    • Health Insurance with Maternity Cover
    • Corona Kavach Policy
    • Corona Rakshak Policy
    • हेल्थ इन्शुरन्स
    • फैमिली हेल्थ इन्शुरन्स
    Car Insurance Guides
    • Third Party Car Insurance
    • Comprehensive Car Insurance
    • Zero Depreciation Car Insurance
    • NCB in Car Insurance
    • IDV Calculator for Car
    • Bumper to Bumper Car Insurance
    • Car Insurance Calculator
    • Own Damage Car Insurance
    • Comprehensive vs Third Party Insurance
    • Compare Car Insurance
    • Find Vehicle Registration Details Online
    Bike Insurance Guides
    • Third Party Bike Insurance
    • Comprehensive Bike Insurance
    • Zero Depreciation Bike Insurance
    • NCB in Two Wheeler Insurance
    • IDV Value Calculator for Bike
    • Add-on Cover in Bike Insurance
    • Bike Insurance Calculator
    • Own Damage Bike Insurance
    • Comprehensive vs Third Party Bike Insurance
    • Compare Bike Insurance
    • Royal Enfield Insurance
    • TVS Insurance
    • Hero Bike Insurance
    Other Guides
    • Types of Insurance
    • Types of General Insurance
    • Types of Motor Insurance
    • International Driving License
    • Visa on Arrival for Indians
    • Visa Free Countries for Indians
    • Comprehensive vs Zero Depreciation
    • Coronavirus Health Insurance
    • Coronavirus Symptoms Checker
    • Indian Passport Rank
    • Digit Illness Group Insurance
    • Hero Splendor Insurance
    • Access Insurance
    • Scooty Insurance
    Calculators
    • SME Buddy Calculator
    • Home Loan EMI Calculator
    • Bike Loan EMI Calculator
    • Car Loan EMI Calculator
    • HRA Exemption Calculator
    • Sukanya Samriddhi Yojana Calculator
    • SIP Calculator
    • RD Calculator
    • SWP Calculator
    • GST Calculator
    • PPF Calculator
    • Personal Loan EMI Calculator
    • EMI Calculator
    • Individual Income Tax Slab
    • Tax Saving Options other than 80C
    Finance Guides
    • What is Credit Score
    • Public Provident Fund
    • How to Open PPF Account?
    • How to open Sukanya Samriddhi Account
    • What is GST?
    • GST Registration in India
    • PAN Card
    • Aadhaar Card
    • Property Tax
    • Road Tax
    • Passport Process
    • Income Tax Slabs
    • How to Save Income Tax in India
    • Tax Deductions under Section 80C
    Traffic Rules
    • PUC Certificate
    • Vehicle Registration Certificate
    • New Traffic Fines
    • Fine for Driving without Helmet
    • Types of Driving Licence in India
    • Driving Licence in Delhi
    • Driving Licence in Bangalore
    • Driving Licence in Jaipur
    • Bangalore Traffic Fines
    • Pune RTO Fine
    • Own Damage Insurance
    Business Products
    • Business Insurance
    • Management Liability Insurance
    • General Liability Insurance
    • Workmen Compensation Insurance
    • Fidelity Insurance
    • Professional Liability Insurance
    • Money Insurance Policy
    • Sign Board Insurance
    • Plate Glass Insurance
    • Erection All Risk Insurance
    • Contractors' All Risks Insurance
    • Directors and Officers Liability Insurance
    • Marine Cargo Insurance
    • Contractors Plant and Machinery Insurance
    RTO Offices in India
    • RTO Office
    • RTO Pune
    • RTO Ahmedabad
    • RTO Bangalore
    • RTO Mumbai
    • RTO Delhi
    • RTO Lucknow
    • RTO Thane
    • RTO Chennai
    Important Links
    • Digit Insurance Reviews
    • Car Insurance Reviews
    • Bike Insurance Reviews
    • Commercial Vehicle Insurance Reviews
    • Travel Insurance Reviews
    • Health Insurance Reviews
    • Mobile Insurance Reviews
    • Become a Digit Partner
    • General Insurance Agent
    • Health Insurance Agent
    • Motor Insurance Agent
    Car Brands & Models
    • Maruti Insurance
    • Toyota Car Insurance
    • Tata Car Insurance
    • Hyundai Car Insurance
    • Kia Car Insurance
    • Mahindra Car Insurance
    • Tata Tiago Insurance
    • Tata Nexon Insurance
    • Hyundai i20 Insurance
    • Creta Insurance
    • Baleno Insurance
    Downloads Do Not Disturb (DND) Public Disclosures Investor Relations Stewardship Policy IRDAI Privacy Policy

    CIN: U66010PN2016PLC167410, IRDAI Reg. No. 158.

    Go Digit General Insurance Limited (formerly known as Oben General Insurance Ltd.) - Registered Office Address - 1 to 6 floors, Ananta One (AR One), Pride Hotel Lane, Narveer Tanaji Wadi, City Survey No.1579, Shivaji Nagar, Pune-411005, Maharashtra | Corporate Office Address - Atlantis, 95, 4th B Cross Road, Koramangala Industrial Layout, 5th Block, Bengaluru-560095, Karnataka | Trade logo of Go Digit General Insurance Ltd. displayed above belongs to Go Digit lnfoworks Services Private Limited and is provided and used by Go Digit General Insurance Ltd. under license.