Direct vs Regular cost calculator
Model the compounded cost of holding a Regular plan over a Direct plan. Assumes constant annual CAGR and flat TERs. Not realized investor drag - actual drag depends on market path, rebalances, and tax.
Illustrative default. Pick a scheme or type the actual TER.
Estimated as Direct + 0.8% (typical distributor spread); we have not ingested AMFI's disclosed Regular TER yet. Edit to your plan's actual TER.
Heads up: the projection below uses an estimated Direct and Regular TER, not this scheme's disclosed figure. Enter the actual TER from your account statement for an accurate result.
Direct plans skip the distributor trail commission embedded in Regular plan TER. Over long horizons, a ~0.8% TER spread compounds into a material drag because the distributor cut grows with the portfolio.
Formula: Value(y) = amount * (1 + CAGR - TER) ^ y, assuming flat CAGR and TER. Model ignores path-dependency, fund manager skill, tax, and exit loads. Actual investor experience varies.
On TER data: we show the scheme's disclosed Direct TER where we have it. AMFI discloses Regular-plan TER per scheme, but we have not ingested that feed yet - so when a field is marked Estimated, it is derived (Regular = Direct + 0.8%), not the actual figure. Always enter your plan's real TER (on your account statement or the scheme factsheet) for an accurate projection.
If you have a Regular plan, switching to Direct is usually a two-click operation via your AMC's portal or any direct-plan investment platform. Exit loads may apply for recent SIPs.