The same mutual fund comes in two versions: direct and regular. Regular pays a commission to a distributor or bank RM every year — embedded in a higher expense ratio. Direct does not. Over 20 years, that gap compounds into lakhs on the same fund.
How much does regular cost you?
A 1% higher expense ratio on a ₹10,000 monthly SIP for 20 years at 12% returns can cost you well over ₹5–8 lakh in lost corpus. You get the same portfolio either way — you just keep less in regular.
When regular might make sense
Only if a fee-only advisor is genuinely managing your plan and you would not invest otherwise. A bank RM pushing products for commission is not advice — it is sales. For self-directed investors, direct always wins.
The takeaway
Platforms like Groww, Kuvera, Coin by Zerodha and AMC websites offer direct plans. You do not need a demat account for mutual funds.