From 1 November 2026, investors buying on a fund house's own website or app will see the Direct Plan selected by default, with a cost notice if they choose Regular. Nothing changes for distributors transacting through Profyt. Here is what is changing, where it applies, and what it means for your business.
What SEBI has said
From 1 November 2026, the Direct Plan becomes the pre-selected option on AMC digital platforms. An investor who switches to the Regular Plan there will be told about its higher expense ratio at the point of purchase.
The stated aim is transparency: making sure investors who buy on their own see the cost difference before they choose.
Where it applies
| AMC website or app | Through you, as a distributor | |
|---|---|---|
| Default plan shown | Direct, from 1 Nov 2026 | Regular, placed under your ARN |
| Cost notice on choosing Regular | Yes, new | Not part of this announcement |
| Who places the order | The investor, on their own | You, on the investor's instruction |
The change covers one channel: a fund house's own website or mobile app. Orders you place for clients as a distributor are a separate channel and are not named in the announcement. Details will be confirmed once SEBI's circular is published.
What stays the same on Profyt
Your existing book and day-to-day business are not affected by this announcement.
Existing client investments. Running SIPs, STPs and SWPs continue in the plan chosen. Nothing is converted automatically.
Transactions through Profyt. Orders placed under your ARN on the Profyt platform work exactly as they do today.
Where your value shows
Profyt is not impacted by this announcement. Your clients continue to get the full value of working with you:
- choosing the right fund house and scheme for each goal
- understanding risk and building an asset allocation
- regular portfolio reviews
- staying disciplined, and avoiding panic selling when markets fall
How we choose funds at Profyt
Every fund on the Profyt platform is researched on two fronts: a quantitative score that compares it only with its true category peers, and a portfolio review that looks beyond the numbers at what the fund actually holds.
- Eligibility: track record, scale and like-for-like plans.
- Quantitative score: ranked against category peers.
- Market lens: emphasis adapts to market valuation.
- Portfolio checks: concentration, style and management.
- Shortlist: top schemes, reviewed every quarter.
Use it to back every recommendation with a clear, consistent process your clients can follow.
The bottom line
Nothing changes on Profyt. The Direct Plan default and the cost notice apply only to DIY investors buying on a fund house's own website or app. Existing investments, running SIPs and the way you transact through Profyt stay exactly as they are, and your advice, discipline and research remain what clients rely on.
Disclaimer: This note is meant for mutual fund distributors and is for information only. It is based on SEBI's announced change for AMC digital platforms; details will be confirmed against SEBI's circular once published. It is not investment advice or a recommendation to buy, sell or hold any scheme. Profyt fund rankings use a proprietary methodology. Mutual fund investments are subject to market risks; read all scheme-related documents carefully. Invincible Minds Private Limited (Profyt), AMFI-registered Mutual Fund Distributor, ARN 365266.