This study analyzes the relative performance of Direct and Regular plans of liquid mutual fund schemes in India and assesses their divergence from benchmark returns over various investment horizons. The study utilizes CRISIL Intelligence Fund Performance data from March 2026, employing descriptive statistics and paired sample t-tests to evaluate return differentials over short-term, medium-term, and long-term timeframes, spanning from 7 days to since launch. The results indicate that Direct plans continuously surpass Regular plans throughout all timeframes up to 10 years, with statistically significant differences (p < .001). Nonetheless, the Since Launch comparison reveals no statistically significant change. Benchmark analysis reveals that Direct plans closely align with their benchmarks, exhibiting very slight variations over time. The findings validate the structural cost benefit of Direct plans and underscore their efficacy in producing enhanced returns without corresponding rises in volatility. This analysis enhances the literature on mutual fund performance by offering empirical information on plan-level return differentials across various horizons within the Indian liquid fund sector.