Every scheme comes in two versions with identical holdings and different prices. Knowing which one you are buying — and why — is the most important cost decision you will make.
Same fund, two price tags
Every mutual fund scheme is sold as a direct plan and a regular plan. The portfolio is identical. The difference is the expense ratio: a regular plan is typically 0.5–1.5 percentage points a year more expensive, because it includes a commission paid to the distributor who brought you in.
On a ₹10,000 monthly SIP over 20 years, a 1% gap in annual cost is worth several lakh rupees at the end. This is not a small thing, and anyone selling you a regular plan should say so plainly.
What the commission pays for
A distributor like Krore is paid by the AMC out of that extra cost. In return you get a person who helps you choose, completes the KYC and mandate paperwork, moves old investments, answers questions when markets fall, and nudges you to keep the SIP going. For many first-time investors that support is the difference between investing and not investing.
How to decide
- If you are confident choosing funds and will stay the course on your own, buy direct plans straight from the AMC or a direct-plan platform. You will pay less.
- If you want a human to set things up and be there when you have questions, a regular plan through a distributor is what pays for that.
What Krore does
Krore distributes regular plans. We do not charge a separate fee, and as AMFI requires we disclose the commission we earn on a scheme before you invest in it. If you decide you would rather go direct, we will tell you how.