Securing Hannav Ledger...
Securing Hannav Ledger...
Glossary
Regular plan is a mutual fund plan distributed through intermediaries who receive commission embedded in the expense ratio.
Regular plans pay your distributor or agent from fund fees — convenient if you want hand-holding, but costlier than direct.
Trail commission paid to MFDs ongoing as long as you stay invested. Upfront commission largely banned; trail remains embedded. Suitable for investors valuing distributor service who accept higher expense ratio drag on long-term compounding.
An agent helps you start ₹5,000 SIP in regular plan with 1.8% expense versus 1.0% direct. Over 15 years the cost difference may exceed ₹1.5 lakh on cumulative investment.
If distributor provides genuine ongoing planning and you prefer not to self-manage, regular may be justified. Compare net benefit after extra fees.
Check plan name in statement — "Direct" or "Direct Plan" absent usually indicates regular. Expense ratio in factsheet confirms.
Exit load rules are scheme-level, identical for direct and regular plans of the same fund.