Expense Ratio Impact

See how a "small" difference in expense ratio can cost you lakhs over time.

Investment Details

Initial Investment

₹

Monthly SIP

₹

Expected Return (Gross)

Before expense ratio deduction

Investment Tenure

Years

Expense Ratio Comparison

Low-Cost Fund (e.g., Index)

Expense ratio of cheaper fund

High-Cost Fund (Active)

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.

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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

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.

Pro Tip

"A 1% difference in expense ratio can cost you 20-30% of your final corpus over 20+ years."

The Formula

Net Return = Gross Return - Expense Ratio

Low-cost: 12% - 0.5% = % | High-cost: 12% - 1.5% = %

The difference of 0% annually compounds into ₹0 over 20 years.

Last Updated: January 2026

Disclaimer: Past performance does not guarantee future results. Expense ratios can change over time. Please read the fund documents carefully before investing.