Analysis: Direct vs Regular Mutual Funds in India’s Discount Brokerage Race

The debate between direct and regular mutual‑fund plans has intensified as discount brokers expand their product suites. Direct plans eliminate distributor commissions and typically deliver higher long‑term returns, a point emphasized by Zerodha’s CEO. However, platforms like Grov argue that many investors still value advisory input, which regular plans can facilitate through research‑driven services such as MF Prime.

While Zerodha remains committed to offering only direct plans for free, Grov’s hybrid approach tries to cater to both DIY investors and those seeking professional guidance. The market’s next phase will likely hinge on how each broker balances cost efficiency with value‑added features.