Retail investors are warming up to direct plans, per AMFI data. There are two plans in mutual funds—regular and direct. Direct plans score over regular plans due to lower expense ratio. Regular plans come embedded with distributor commission which is excluded in direct plan. Lower the expense ratio, higher the returns. Over longer periods, difference in returns becomes more apparent. Direct plans have become popular because several online portals offer them for a marginal fee or free of cost. Such portals appeal to those who wish to invest in MFs directly. However, it's unwise to go direct if you are unable to pick the right fund, all by yourself. In volatile markets, a guiding hand is helpful.