Regular Mutual Funds – What are Regular Mutual Funds?

Manish Kothari
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Manish Kothari



All mutual fund investments made through a broker or intermediary or bank are regular mutual funds. This mode of mutual fund investing is best and ideal for investors who are new in the markets or are not that knowledgeable or skilled players. 

Here the intermediary providing the mutual fund are financial experts and skillful people who can assist you immensely in your investing journey in return for a very nominal fee which is set off from your gains.

In this article, we will discuss in detail Regular Mutual Funds and gain a better understanding of them. 


1. Professional assistance:

Intermediaries involved in regular funds have in-depth knowledge of the huge array of mutual funds. And therefore, they can assess an investors’ profile to find the best fit for them. A qualified financial advisor can guide the investors during their journey and even impart knowledge to earn higher returns. 

2. Convenience:

Investing in these plans of mutual funds is easier and convenient when compared to direct plans. The research and analysis in direct plans is a time-consuming process and an intermediary has the knowledge and skills required of the existing mutual funds. As a result, this makes regular plans more comforting and convenient.

3. Value-added services:

These intermediaries also offer few additional services for added convenience. These services include keeping a record of an investor's investments, facilitating redemption, providing tax proof among others. All these are not available in direct plans.

4. Regular monitoring and reviewing:

Markets are volatile and dynamic and ever-changing. As an investor, it is really hard and tiring to keep track of the market and monitor the portfolios regularly. In a regular plan, this is done by the intermediary relieving burden from the head of investors.


There has been a much-heated debate with respect to making a choice between the two plans of one mutual fund, i.e. Direct and Regular plans. Here is a quick comparison table that will help investors to make a better decision. 

ParticularsRegular PlanDirect Plan
Additional Charges A nominal fee for service is paid to the intermediary in return for great assistanceNo additional fee is being charged hence no assistance is provided. Investors are on their own.
Units purchasedUnits are purchased with the assistance of an advisor or brokerUnits can be purchased by investors directly
Expense RatioA bit high, since the intermediary is paid a commission by the AMC.Lower, since no extra service fee is being charged and no assistance is provided.
Convenience More Convenient Comparatively less convenient
ReturnsIdentical to direct plans but can be a bit less than themA bit high from what is offered by regular plans
Financial adviceThe intermediary here offers guidance based on the risk appetite and investment goals of the investorInvestors do not receive any type of financial advice
Requirement of knowledgeInvestors do not have to take stress about any knowledge or research since the intermediary guides and helps navigate the investments.Investors should possess sufficient knowledge of the investment and market space


In crux, both the plans of mutual funds, regular and direct, possess their pros and cons. Nevertheless, investors must note that there is no difference in the composition of the portfolio and investment strategy of both funds. The difference is in the working of these funds. Regular mutual funds assist you in investing in return for a nominal fee while direct funds leave you on your own. 

For investors who are new or not having great knowledge of the markets, Regular Mutual Funds are a better pick than Direct Mutual Funds. 


1. What are Regular mutual funds?

All mutual fund investments made through a broker or intermediary or bank are regular mutual funds. They provide expert financial advice and assistance throughout the investing journey in return of a nominal amount of fee.

2. Do the portfolio composition is different in the regular and direct plans?

No, The portfolio composition is exactly the same only the expense ratio is high in regular plans. 

3. What are the key advantages of investing in regular funds?

Key advantages of investing in regular funds are as follows:

  1. Convenience
  2. Value-added services
  3. Regular review and monitoring
  4. Professional assistance


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