New Delhi, Oct. 14 -- Do you know that the same fund, managed by the same fund manager and investing in the same portfolio, can give you different returns?

This sounds surprising, right? But this is exactly what happens when you compare regular and direct plans on the same mutual fund scheme. The underlying investments and fund manager can remain the same, but the two plans show differences in expense ratios. That's the difference that actually affects the returns investors receive.

Even a gap of 1% may be significant when you calculate long-term returns. Let's understand how the 1% effect can create a difference in your portfolio when you stay invested over years.

A mutual fund scheme can allow investors to choose between regular and ...