A direct plan is what you buy directly from the mutual fund company, whereas a Regular plan is what you buy through as an advisor, broker, etc.
Direct Mutual Funds
Direct mutual funds are a type of mutual fund that is directly offered by the AMC or fund house. There is no involvement of third-party agents in the direct mutual fund. Therefore, since there are no third-party agents involved, there are no commissions and brokerage. Thus, the return is higher due to a lower expense ratio.
The NAV is higher than a regular mutual fund. The market research is done by you only.
Regular Mutual Funds
Regular plans are those mutual funds that are bought through an intermediary. These intermediaries can be brokers, advisors, banks, s, etc. These intermediaries charge the fund house a certain fee for selling their mutual funds.
The expense ratio for regular mutual funds is higher as compared to direct mutual funds.
There is the involvement of a third party in a regular mutual fund. NAV is lower than direct mutual funds.
Regular mutual funds are best suited for investors who seek assistance. Even though regular plans seem costly when it is compared to direct mutual funds. A small percentage of the additional cost is worth enough for the right investment decision.