Same fund. Same NAV.
Rs 14.5L walks out.
88.2
Direct plan, Rs lakh, after 20 years
vs
73.7
Regular plan, same fund, same 20 years
A friend bought a fund through his bank relationship manager years ago. Picked it once, never thought about it again. What he does not know is that the RM still collects a slice of his holding every single year. It is called a trail commission. It is the finder's fee you keep paying long after the finder stopped finding anything.