What is the difference between Direct and Regular mutual funds?

Direct plans are purchased directly from the fund house without intermediaries and their total expense ratio does not include the distribution commission. Investors who are knowledgeable and can do their own research or they prefer paying separately for the advice from a registered investment advisor generally choose a direct plan. Regular plans include distributor commissions (as decided by the regulator SEBI) in their total expense ratio which is paid to the mutual fund distributor by the mutual fund companies. The investor need not pay anything directly to the mutual fund distributor for the service rendered by them. Regular plans are generally good for those who would like to invest through the guidance of a mutual fund distributor.