# Direct mutual fund plans cheaper but investors exit faster, data shows 2026-08-11T01:45:37+00:00 | Business & Economy | Indian Opinion Desk Corroboration: 2 independent outlets Direct mutual fund plans, launched in 2013, let investors buy without a distributor and save up to 1% in annual expense ratios. Over 10 years, a Rs 10,000 monthly SIP in the direct plan of an average equity fund would have grown to Rs 27.42 lakh versus Rs 25.58 lakh in the regular plan, a gap of Rs 2.03 lakh. But this cost advantage comes with behavioural risks. AMFI data shows 41% of direct-plan assets are redeemed within the first year, and only 20% stay invested for over three years, compared with 32% for regular plans. Experts quoted by Economic Times say the invisible cost of panic exits and wrong decisions often outweighs the savings from lower fees. Separately, Capitalmind Mutual Fund reported that 84% of its AUM is in direct plans, with 36% of individual investors from smaller towns, indicating growing reach beyond top cities. ## Coverage - economictimes.indiatimes.com - businesstoday.in Tags: AMFI, direct plans, expense ratio, investor behaviour, mutual funds, SIP Canonical: https://indianopinion.org/direct-mutual-fund-plans-save-cost-but-test-investor-discipline/ License: Summary and commentary (c) Indian Opinion, reusable with attribution. Facts belong to the linked sources. Cite: https://indianopinion.org/direct-mutual-fund-plans-save-cost-but-test-investor-discipline/#story-in-brief Review state: restored archive article, accurate at time of publication, not offered to search indexes.