New Delhi, Oct. 30 -- Direct and regular plans of a mutual fund scheme hold the same portfolio and are managed by the same fund manager. However, their returns differ because of the costs involved.

While both plans may be available on the same platforms, direct plans are routed directly through an asset management company (AMC), whereas regular plans are bought through intermediaries such as brokers.

Regular plans carry distribution-related costs, resulting in a higher expense ratio that can reduce investors' returns over the long term.

Securities and Exchange Board of India (SEBI) Chairman Tuhin Kanta Pandey, speaking at NDTV Profit IGNITE on Wednesday, announced that direct plans will become the default option on AMC digital platform...