Glossary Background

Returns Regular

Returns from regular plans are slightly lower than those from direct plans, mainly due to the higher expense ratio that includes commissions for intermediaries. Since both regular and direct plans invest in the same underlying assets, their gross returns are the same. However, after deducting the additional cost of advisory or distribution services in regular plans, the net returns to the investor are slightly reduced. Despite this, regular plans may still appeal to investors seeking convenience and professional guidance. The support received in choosing and managing funds can offset the marginally lower returns, especially for those unfamiliar with market dynamics.