If you started your SIP through an agent or a bank, you're probably in a 'regular' plan without realising it. That means a middleman is getting a small cut of your investment every year — usually 0.5–1% more than what you'd pay in a 'direct' plan.
That sounds tiny, but on a ₹5,000/month SIP over 15 years, the difference can be ₹3–5 lakh in lost returns — money that should have stayed yours.
A direct plan is the exact same fund, same fund manager — just without the distributor fee.
What this means for you
- If your SIP is on a direct-plan investment platform, you're likely already in a direct plan — no action needed.
- If your SIP was set up by a bank relationship manager or an agent, check your statement — if it says 'Regular' next to the fund name, that's the costlier one.
- Switching to direct doesn't change your fund — it just removes the extra fee.
What you can do
- Log in to your investment app or the CAMS/KFintech portal and look for the word 'Direct' or 'Regular' next to your fund name — takes 2 minutes.
- If you're in a regular plan, start a fresh SIP in the direct version of the same fund and gradually move your investment over.
You didn't do anything wrong — most people don't even know this difference exists. Now you do.