Direct vs. Regular: Does a Higher NAV Matter?

Ratin DSIJ / 09 Jul 2026 / Categories: DSIJ_Magazine_Web, DSIJMagazine_App, Letters to Editor, MF - Letter to Editor, Mutual Fund

I was reading about direct and regular mutual fund plans.

I was reading about direct and regular Mutual Fund plans. While I understand the difference in costs, I noticed that the NAV of direct plans is generally higher. Am I correct? If so, how does this affect my investment returns? - Shivani Doshi [EasyDNNnews:PaidContentStart]

Editor Responds : Yes, your observation is correct. The NAV of a direct plan is generally higher than that of the corresponding regular plan over time because direct plans have lower expense ratios, as they do not include distributor commissions. Since fewer expenses are deducted from the scheme's assets, the NAV grows at a slightly faster pace. However, a higher NAV does not mean the fund is more expensive or offers better value. What matters is the number of units you receive and the overall growth in your investment. If you invest the same amount in both plans, you will receive fewer units in the direct plan because of its higher NAV, but the lower costs can result in better long-term returns. Choose between the two based on your need for professional advice and investment support.

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