Direct mutual fund plans to be the default on AMC apps from 1 November 2026, says SEBI chief
SEBI chairman Tuhin Kanta Pandey said direct plans become the default on AMC digital platforms from 1 November 2026. What direct and regular plans mean.
SEBI chairman Tuhin Kanta Pandey said on Wednesday, 28 October 2026, that from 1 November 2026 direct plans will be the default option on asset management companies' digital platforms. He added that investors who choose regular plans will have to be told about their higher expense ratio. He was speaking at the NDTV Profit Ignite: Diwali Edition event in Mumbai.
This is what was reported by NDTV Profit. We could not find the SEBI circular itself, so the exact scope is not confirmed. For example, it is not clear which platforms count or what the warning will look like. We will update this guide when the text is available.
Direct plan and regular plan, in short
Every mutual fund scheme has two plans with the same portfolio and the same fund manager. A direct plan is bought without a distributor, so no distribution commission is paid from it. SEBI's master circular for mutual funds says the direct plan has a lower expense ratio and a separate NAV. A regular plan is bought through a distributor, and the commission is part of its expense ratio, so its NAV is lower over time.
What it may mean for you
- If you invest on a fund house's own app or website, you would see the direct plan pre-selected from 1 November.
- If you invest through a bank, broker or distributor app, check which plan your SIP is in. The plan is named in your statement.
- The difference in cost is small each year but compounds over a long SIP. Our SIP basics guide and SIP calculator show how time works on small differences.
- Switching an existing regular-plan holding to direct counts as a sale, so it can attract capital gains tax and exit load. Check before you switch.
Mutual fund investments are subject to market risks. This is information, not advice, and SEBI's rules on investor protection apply.
Saifu is not registered with SEBI as an investment adviser. Mutual fund investments are subject to market risks. This guide explains rules and is not a recommendation.
Sources: NDTV Profit: SEBI chief says direct MF plans default from Nov 1, 28 October 2026, SEBI: Master Circular for Mutual Funds, 20 March 2026, AMFI: Direct Plan
Rules, rates and limits change. Check the official source linked above before you rely on a figure here. Posts never contain referral or affiliate links from the writer.
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