regular vs direct, why?
In our case, initially we invested 6lakh via regular, later all 94% via direct mf only, planning to switch after 2years from regular to direct, since we are getting door delivery services like term, health , vehicle insurance services..
Ans: Good decision overall — you're already mostly in Direct (94%), which is excellent for a large portfolio. The small regular portion (₹6 lakh initial) has limited impact, but switching it after 2 years makes strong financial sense.
Quick Math on Your ₹6 Lakh Regular Portion
Assume hybrid fund, ~9% gross return, and ~0.75% TER difference:
If you keep it in Regular for full 10 years → you lose roughly ₹80,000 – ₹1.2 lakh (compounded) compared to Direct.
If you switch after 2 years → you lose only for the first 2 years (~₹15,000 – ₹25,000 extra cost), then the remaining 8 years grow at Direct rates.
Net savings by switching after 2 years: ₹60,000 – ₹1 lakh+ on this small portion alone (exact amount depends on actual returns and when you switch).
On the full portfolio (assuming total ~₹1 crore+ now), your overall drag from the regular part is very small — less than 0.1% portfolio-level impact.
Should You Switch After 2 Years?
Yes, switch — unless the door delivery services are genuinely saving you significant time/money every year.
Pros of keeping Regular (staying with advisor):
Door delivery for term insurance, health insurance, vehicle insurance.
Possible ongoing advice, tax filing help, claim assistance, portfolio reviews.
Cons of keeping Regular:
Higher expense ratio continues forever on that corpus (and all future gains).
You’re already experienced enough to do most things directly or via low-cost platforms.
Insurance commissions are separate — many advisors earn well from insurance sales, so MF regular plan commission is extra on top.
Practical Recommendation
Switch the ₹6 lakh + growth to Direct after 2 years (or earlier if services are not heavily used).
Negotiate with your advisor — Ask if they can move you to Direct while still providing the insurance services (some do this for loyal clients).
Keep insurance separate — Buy term/health/vehicle insurance directly or through a dedicated insurance advisor/broker. This is often cheaper and you avoid bundling everything.
Rule of thumb: If the advisor’s services are worth more than ₹8,000–12,000 per year to you (time saved + value), then keeping a small regular portion is fine. Otherwise, switch and handle insurance separately.
You’re already doing 94% Direct — that’s smart. Completing the switch on the remaining 6% after the initial period is a very good move. It shows you understand the long-term cost of regular plans.
Would you like me to calculate the exact projected loss/gain based on your current total portfolio size, expected return, or specific fund? Just share more details (without personal sensitive info).
