---
title: What’s the difference between direct and regular mutual funds?
description: "All mutual fund schemes are available in **two options****:****Direct**and**Regular**. ** ** Direct plans are ideal for investors who prefer to **research, plan, and execute** their investments independently on their own and are comfortable selecting mutual fund schemes without expert guidance. These…"
url: "https://arafinserv.com/fa/beginners-guide-to-investing/whats-the-difference-between-direct-and-regular-mutual-funds/"
updated: "2026-03-31"
category: "Beginner's Guide to Investing"
---

# What’s the difference between direct and regular mutual funds?

All mutual fund schemes are available in **two options****:****Direct**and**Regular**. ** **

Direct plans are ideal for investors who prefer to **research, plan, and execute** their investments independently on their own and are comfortable selecting mutual fund schemes without expert guidance. These plans are typically available through the **mutual fund company’s (AMC's) official website and through**certain do-it-yourself platforms that offer **direct mutual fund.**Since there is **no involvement of a mutual fund distributor or an advisor**, the**expense ratio is lower compared to regular plans.**Direct plans are also a suitable option for those who work with a **fee-based financial advisor** who charges a**fee (fixed or a percentage of the investment amount) for their advice**.

Regular plans are offered through**mutual fund distributors, banks**, or financial advisors who a**ssist you in building a portfolio and provide ongoing guidance and support**to help you achieve your financial goals. In the regular plan,the**expense ratio is slightly higher**, as it includes a **commission paid by the mutual fund company**to the distributor for their services. Investor does not need to pay anything separately for the guidance and support provided by the mutual fund distributor. Regular plans are especially useful for individuals who need **handholding in their financial journey,**want to ensure their investments align with their long-term goals, and prefer **expert guidance** in portfolio construction and rebalancing

We’ve written a detailed blog on **Direct vs Regular Mutual Funds****.****Read more about it here:**[https://arafinserv.com/direct-or-regular-a-detailed-view/](https://arafinserv.com/direct-or-regular-a-detailed-view/)