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What is a regular plan?
A regular plan is the version of a scheme bought through a mutual fund distributor. Its expense ratio includes the distributor's commission, paid by the fund house.
How it works
The distributor helps you choose and set up investments, keeps KYC and nominations in order, handles service requests and reviews your holdings with you. The fund house pays the distributor a trail commission out of the scheme's expenses for as long as you stay invested.
SEBI does not allow upfront commissions. Your Consolidated Account Statement shows the commission paid on each scheme, and distributors must tell you their commission when you ask.
Example
On a ₹5 lakh holding in a regular plan with a trail commission of 0.8% a year, the distributor would receive about ₹4,000 a year from the fund house, already built into the NAV.
Keep in mind
- Ask your distributor what they earn on any scheme they suggest.
- Mutual fund distributors deal only in regular plans.
Questions people ask
Do I pay the distributor separately?
No. The commission comes out of the scheme's expenses and is already reflected in the NAV.
Where can I see the commission?
In your Consolidated Account Statement, and from your distributor on request.
Related terms
General information for education, not investment advice or a recommendation of any scheme. Mutual Fund investments are subject to market risks, read all scheme related documents carefully. Past performance may or may not be sustained in future. Last reviewed 25 October 2026.