SAVE 50K IN 4 MONTHS EASILY!
Share
Siddhi Sharma, CFP®

Siddhi Sharma, CFP®

Money Coach, Lxme } NISM Certified

Regular Mutual Fund vs Direct Mutual Fund

So what’s the buzz around Direct vs Regular Mutual Fund?

If you’re an investor or are thinking about investing in mutual funds, we bet you’ve been subjected to an overload of welcomed or unwelcomed, legit or unsolicited advice on direct and regular mutual funds. So, what’s going on?

Let’s understand this better

Difference between direct vs regular mutual fund

You’d think that a direct fund is right for you because you don’t have to pay a commission! But hold on, there’s got to be a catch right?

So ask yourself these 5 questions before you decide to SWITCH or invest in a Direct Mutual Fund  

Do you understand the financial markets?

  1. Can you undertake technical & fundamental analysis of all funds you invest in?
  2. Can you make an investment decision without any guidance?
  3. Do you have the time to track the market?
  4. Are you willing to actively manage & rebalance your portfolio?

And all this amounts to a LOT of time. Are you ready to take on this responsibility and do you have the skill? 

It may seem like Direct Mutual Funds can help you eliminate the third party commission charges, but we feel the need to tell you that although you will pay a small commission on a regular fund, the amount in question must be weighed against the expertise, guidance and convenience it offers.  

So on 24th July, we hosted a LIVE with industry expert and Lxme founder, Priti Rathi Gupta to discuss and get our questions clarified on Regular VS Direct Mutual Funds.

These are the key takeaways from that informative session: –

  1. For Regular Funds, the biggest asset is to have someone monitor your funds 24/7 giving you a constant edge in your investments. The guidance, expertise, and rebalancing come as part of a Regular Fund. Also in events like a market downfall, change in sectorial views, debt-equity ratio, and futuristic scenario, the fund manager steps in and guides the investor on the best possible outcome.
  2. Of course overall returns are very crucial when it comes to your investments but understanding the opportunity cost – The 1% cost of regular funds in return for a 2-3% cost on guided and monitored investments is important to take note.
  3. Direct Funds is not for all types of investors – An HNI investor who puts crores in Mutual Funds could consider Direct Plans however, even for that type of an investor, it’s important to constantly take out time to rebalance and scale the markets for best course of action which seems impossible.
  4. Before choosing a Regular VS Direct fund, it’s important to ask yourself these important questions.
    What are the skills I have?
    What are the returns I need?
    And therefore, what is the best option for me between costs and returns.

If you found this helpful, share this blog with your friends and family!!

Download the Lxme app now to start investing!

Related Article You May Like: – ELSS Tax Benefits: Understanding Tax Bachao, Lxme Badhao


FAQs – Common Questions on Direct vs Regular Mutual Fund

Which mutual fund is better: direct or regular?

Answer: Lxme recommends understanding your investment style. Direct funds suit DIY investors for lower costs. Regular funds, with advice, are suitable for those preferring guidance.

Which is better: direct or regular?

Answer: It depends on your preference. Direct funds offer lower costs but require self-management. Regular funds provide guidance but may have higher expenses.

Why are regular funds better than direct funds?

Answer: Regular funds offer professional advice, making them suitable for investors seeking guidance. Though with slightly higher costs, the expertise provided can outweigh the expenses.

To stay connected with Lxme and access inspiring content, follow us on Instagram and subscribe to our YouTube channel.

Please note, The Lxme Dream Card services has been discontinued from 30th November, 2024 to make way for something very exciting!

Sorry for the inconvenience caused and stay tuned for something really special!

New Investor? Request a Callback.

Fill in your details and we will guide you at every step

    other blogs
    Invest in gold mutual fund through SIP
    Mutual Funds March 28, 2025
    How To Invest in Gold Mutual Fund Through SIP?

    Women and gold share a deep bond for ages. Traditionally, buying gold jewelry or physical gold in the form of bars, coins, etc. has been seen as a form of investment. But times have changed & evolved, so we need to evolve too! Now, you can invest in gold without physically owning it, with no How To Invest in Gold Mutual Fund Through SIP?

    By Siddhi Sharma, CFP®
    Share
    NFO and its benefits to investor
    Mutual Funds March 17, 2025
    What Is NFO and How Can Investors Benefit from It?

    Once a woman starts learning and managing her own money, she naturally becomes curious about newer financial concepts. The more she understands, the more she wants to explore different ways to grow her money. One such concept is NFO (New Fund Offer) a term that many women in our community have been asking about. So, What Is NFO and How Can Investors Benefit from It?

    By Siddhi Sharma, CFP®
    Share
    Best Saving Schemes for Women in India
    Mutual Funds Saving March 4, 2025
    Best Saving Schemes for Women in India

    Women need to save and invest more than men do because of things like longer life expectancy, pay gaps between men and women, and taking time off to care for family members. These money-saving tips and different savings schemes for women can help women become financially independent, build wealth, and prepare for emergencies. These make Best Saving Schemes for Women in India

    By Siddhi Sharma, CFP®
    Share