Definition of Regular Plan
A regular plan is a mutual fund scheme where you invest through a distributor, bank, or financial advisor. The AMC pays the distributor a trail commission (typically 0.5–1.5% per year of your AUM), which is built into the expense ratio of the regular plan — making it more expensive than the direct plan of the same fund.
Regular plans are suitable for investors who need hand-holding, personalized advice, and want a dedicated advisor to manage their portfolio. The advice and ongoing service may justify the higher cost in some cases. However, for self-directed investors who understand their goals, direct plans are always mathematically superior. The difference of 1% per year can cost ₹30–40 lakh over 25 years on a ₹10,000/month SIP.