New Delhi, Oct. 29 -- Direct and regular mutual fund plans invest in the same portfolio and are managed by the same fund manager. However, their returns can differ because of how investors purchase them and the costs involved.

You may find both plans on the same platforms, but direct plans are routed directly through the asset management company (AMC), while regular plans are bought through intermediaries such as brokers or mutual fund distributors.

Since regular plans include distribution-related costs, they typically have a higher expense ratio, which can reduce investors' returns over time.

To improve transparency around these costs, Securities and Exchange Board of India (SEBI) Chairman Tuhin Kanta Pandey said in his address at NDT...