I have been in the mutual fund industry for more than two decades now. The industry has grown leaps and bounds from where it had started. It is known to be one of the most regulated industries in India. Last year, Sebi directed asset management companies to disclose the actual commission paid to distributors (in absolute terms) against the investor's total investment in each scheme. While this didn’t go down well with distributors, it was well implemented by all AMCs.
But I wonder if this is enough and the envisioned benefit is known to the investor. In my utopian world of MF industry, the total expense ratio or TER would have been a major driving factor. There should not be separate plans for direct subscription (direct plan) or for subscription through distributors (regular plan).