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ANALYSIS

Direct vs Regular mutual fund calculator

The real rupee cost of a higher expense ratio, compounded over your horizon

LEARN: Direct vs Regular plan · Expense ratio

How it works

Direct and Regular plans of the same scheme hold identical portfolios - the only difference is the expense ratio, which is higher on Regular because it bakes in a distributor commission. A higher expense ratio reduces the fund's annual return by roughly the same number of percentage points, every year, so the gap compounds. Enter your own fund's two expense ratios (find Direct on this site's fund pages; find Regular on the fund's factsheet) to see the actual rupee cost over your horizon - the defaults below are a typical range, not a specific fund's real numbers.

Investment
Expense ratios (typical range shown - use your own fund's real numbers)
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Assumes the expense-ratio gap reduces net return 1:1, monthly compounding · Not investment advice

Frequently asked questions

How much does a higher expense ratio actually cost over time?

The expense ratio is deducted from the fund's return every year, so a 1 percentage-point-higher expense ratio means roughly 1 percentage point less growth, every year, compounding. Over a short period that is a small rupee amount; over 15-20 years it compounds into a large one, because the gap applies to a growing corpus, not just your original contribution.

Where do I find my own fund's Direct and Regular expense ratios?

This site shows a fund's Direct-plan expense ratio on its own page - search for your fund under Mutual Funds. The Regular-plan figure for the same scheme isn't published on this site; check the fund's factsheet, the AMC's website, or your Regular-plan statement for the exact number, then enter both here.

Is the expense ratio the only difference between Direct and Regular plans?

For the same scheme, Direct and Regular plans hold the exact same portfolio and have the same fund manager - the only structural difference is that Regular plans build in a distributor commission, which shows up entirely as a higher expense ratio. There is no other performance difference between the two plans of the same fund.