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Direct vs Regular Fund
How a lower expense ratio compounds into more wealth.

Your Numbers

Same fund, same gross return — only the expense ratio differs.

Monthly SIPWhat you invest each month
₹500₹10,00,000
Gross ReturnBefore fund expenses — your assumption
1%30%
YearsHow long you stay invested
1 yr40 yrs
Direct Expense RatioAnnual cost of the Direct plan
0.00%2.50%
Regular Expense RatioAnnual cost of the Regular plan
0.00%2.50%
Direct PlanFor your inputs
₹1,20,27,069
Value at the end
Net return11.50%
Invested₹45,00,000
Gain₹75,27,069
Regular Plan
₹1,09,45,689
Value at the end
Net return10.50%
Invested₹45,00,000
Gain₹64,45,689
A 1.00% lower yearly expense ratio compounds into about ₹10,81,380 more over 15 yrs — the SAME fund, just the cheaper plan. Factual on your inputs.
Read before you compare
  • Direct and Regular are the SAME underlying portfolio — the Regular plan’s expense ratio includes a distributor commission.
  • A Direct plan means you pick and review funds yourself; a Regular plan comes with an advisor or distributor whose guidance has value to some investors.
  • Expense ratios change over time and differ by fund — use the actual ratios from the scheme document.
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AI Insights

DhanRadar AI

A small yearly cost gap compounds silently. Even 1% extra in expenses each year doesn’t feel large, but over 15–20 years it quietly erodes a significant slice of your corpus — because the fee is charged on the growing balance, not just what you put in.

The expense ratio works like a guaranteed drag. Markets go up and down, but the fund house deducts its expense ratio every single year regardless. That makes a lower ratio the one near-certain edge available to you within the same fund.

For education only — not investment advice. A cost illustration on your own inputs; returns are your assumption and real markets vary.

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Related Calculators

Calculations are estimates for illustration only and assume a constant annual return, which real markets do not provide. DhanRadar is a research & analytics platform, not an investment advisor. Mutual fund investments are subject to market risks.