Direct vs Regular Mutual Fund Calculator
Quantify the massive compounding wealth stolen by intermediary distributor commissions over your investment horizon.
Investment & Commission Inputs
Total Commission Lost to Regular Plan
₹₹33,88,823.93
You forfeit 12.67% of your wealth strictly to intermediary commissions!
Direct Plan Value
₹₹2,67,37,989.22
CAGR: 12.5%
Regular Plan Value
₹₹2,33,49,165.29
CAGR: 11.5%
Do you own Regular Plans unknowingly?
Upload your Consolidated Account Statement (CAS PDF) in our Portfolio X-Ray to detect all regular plans and estimate your exact switch gains.
Scan Portfolio for Regular PlansExpense Ratio Compounding Drag
All calculations on InvestResearch India execute with 28-digit precision arithmetic via decimal.js, eliminating floating-point drift and adhering to statutory regulatory conventions.
Example: ₹20,000 Monthly SIP for 25 Years with a 1.0% Commission Difference
Monthly SIP: ₹20,000 | Horizon: 25 Years | Direct CAGR: 13.0% | Regular CAGR: 12.0% (1.0% commission drag)
1. Total Invested: ₹60,00,000 across 300 months 2. Regular Plan Maturity: ₹3,79,53,000 3. Direct Plan Maturity: ₹4,79,15,000 4. Cumulative Lost to Broker Commissions: ₹99,62,000 (~₹1.0 Crore forfeited)
Statutory Tax Framework (Union Budget FY 2026–27)
Switching from Regular to Direct plans is legally treated by the Income Tax Department as a redemption and fresh purchase, triggering capital gains tax under Section 112A (12.5% for equity > ₹1.25L). Plan switches strategically across financial years.
Frequently Asked Questions
What is the difference between Direct and Regular mutual fund plans?
Direct plans are bought directly from the AMC without any intermediaries, carrying lower Total Expense Ratios (TER). Regular plans are routed through brokers, distributors, or banks who earn an annual trail commission (typically 0.5% to 1.5%) deducted directly from your fund's daily NAV.
Is the underlying portfolio of Direct and Regular plans identical?
Yes. The portfolio manager, fund stocks, bonds, and investment strategy are identical. The only difference is the daily NAV: Direct plan NAV grows faster because lower management fees are deducted.
How do I switch from Regular to Direct plans without heavy tax?
You can utilize the annual ₹1.25 Lakh tax-free LTCG threshold under Section 112A. Stagger your switches over 2 to 3 financial years so capital gains remain within the exemption ceiling.