Category Architecture

Mutual Fund Category & Expense Drag Analysis

Understand how different mutual fund categories function in India, how active funds compare to the Nifty 50, and how much money you lose to regular plan distributor commissions.

Interactive Tool

Direct vs Regular Plan Fee Impact Calculator

See how a typical 1.5% annual distributor commission eats into your life savings over time.

Monthly SIP Amount:₹20,000

Investment Tenure:20 Years

Wealth Lost to Distributor Commissions

-₹41,03,166

Direct Plan Final Value:₹2,22,88,288

Regular Plan Final Value:₹1,81,85,122

Indian Mutual Fund Category Comparison

Benchmark: Nifty 50 TRI

Nifty 50 Index Funds

Direct Plan TER:0.10% – 0.20%

Regular Plan TER:0.80% – 1.20%

Our Take: Essential foundational holding for every Indian investor. Low cost, zero manager risk, beats 70%+ active funds.

Best for: Core long-term equity allocation (5+ years horizon)

Benchmark: Nifty 500 TRI

Flexi-Cap / Multi-Cap Funds

Direct Plan TER:0.60% – 0.95%

Regular Plan TER:1.60% – 2.10%

Our Take: Good complement to index funds if manager has proven 7+ year rolling return consistency and low portfolio turnover.

Best for: Seeking active alpha across large, mid, and small-cap segments

Benchmark: Nifty Midcap 150 TRI

Mid-Cap Funds

Direct Plan TER:0.65% – 1.05%

Regular Plan TER:1.75% – 2.25%

Our Take: High growth potential but experiences 20–35% cyclical drawdowns during broader market corrections.

Best for: Aggressive investors with 8+ years investment horizon

Benchmark: CRISIL Liquid Fund Index

Liquid & Overnight Funds

Direct Plan TER:0.12% – 0.25%

Regular Plan TER:0.25% – 0.45%

Our Take: Far safer than equities for short-term capital. Instant redemption up to ₹50,000 per scheme.

Best for: Emergency funds, STP staging, and cash needs within 1 year

Benchmark: Nifty 50 Arbitrage Index

Arbitrage Funds

Direct Plan TER:0.25% – 0.40%

Regular Plan TER:0.80% – 1.10%

Our Take: Treated as equity for tax purposes (12.5% LTCG, 20% STCG) while holding zero directional equity market risk.

Best for: Tax-efficient short-to-medium term parking for high tax slabs

Personalized Plan

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