Expense Ratio Impact
See how a "small" difference in expense ratio can cost you lakhs over time.
Investment Details
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₹
Before expense ratio deduction
%
Years
Expense Ratio Comparison
Expense ratio of cheaper fund
%
Expense ratio of costlier fund
%
Why Expense Ratio Matters
Expense ratio is deducted from your returns daily. Over long periods, even a 1% difference compounds into a massive gap.
The Hidden Cost
₹0
You lose 0% of your potential wealth by choosing the higher expense ratio fund.
Low-Cost Fund (0.5%)
Net Return: %
₹0
High-Cost Fund (1.5%)
Net Return: %
₹0
Wealth Growth Comparison
Documentation
The Power of Low Costs
What is Expense Ratio?
Expense ratio is the annual fee charged by mutual funds to cover management, administrative, and operational costs. It's expressed as a percentage of your investment.
Index vs Active Funds
Index funds typically have expense ratios of 0.1%-0.5%, while actively managed funds can charge 1%-2.5%. Over 20+ years, this difference can erode a significant portion of your wealth.