SEBI makes direct mutual fund plans default on AMC platforms
Business
Starting November 1, 2026, SEBI is making direct mutual fund plans the default choice on asset management companies' digital platforms.
If you want a regular plan, which comes with extra costs because of distributor commissions, you'll need to pick it yourself.
SEBI: regular plans cost more
SEBI wants everyone to know exactly what they're paying for. Direct and regular plans invest your money the same way, but regular ones cost more due to middlemen fees.
SEBI chairman Tuhin Kanta Pandey put it simply: "Investing must be a choice made with open eyes, knowing what you buy, what it costs, and what you risk."