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Direct vs Regular Mutual Fund Calculator

In Indian mutual funds, regular plans include ongoing distributor commissions (typically 0.50% to 1.50% annually) deducted daily from your scheme's Net Asset Value (NAV). Direct plans eliminate this intermediary friction, compounding directly to your terminal corpus.

Mathematical Mechanics of the 1% Difference

Because mutual fund returns compound exponentially, a 1.00% difference in annual Total Expense Ratio (TER) does not mean a 1% loss in terminal wealth. Over 20 years, a 1% fee difference forfeits approximately 15% to 22% of your entire portfolio corpus.

Tenure Total Invested Direct (12.5% Net) Regular (11.5% Net) Wealth Lost to Drag
10 Years ₹12,00,000 ₹24,40,000 ₹22,90,000 ₹1,50,000
15 Years ₹18,00,000 ₹53,20,000 ₹48,10,000 ₹5,10,000
20 Years ₹24,00,000 ₹1,09,90,000 ₹96,50,000 ₹13,40,000
25 Years ₹30,00,000 ₹2,21,40,000 ₹1,87,30,000 ₹34,10,000

Read our in-depth research breakdown: Direct vs Regular Mutual Funds: The Compounding Drag of Distributor Commissions.