New Delhi, Aug. 24 -- When you open a mutual fund scheme on an investment app, you will often come across an important choice: Direct Plan or Regular Plan?

At first glance, both options may appear identical. The fund manager, investment strategy and portfolio of stocks, bonds or other assets are generally the same. Yet, their Net Asset Values (NAVs) and the returns earned by investors can differ.

Both plans invest in the same underlying assets. The main difference lies in how the investor purchases the fund and the costs involved in the process.

A regular plan is usually purchased through an intermediary such as a mutual fund distributor, bank, broker or financial advisor. The intermediary may help investors choose suitable schemes, co...