🏦 Expense Ratio Calculator
How much are your mutual fund & retirement fees really costing you?
Last updated: March 2026
* This calculator is for educational purposes only and does not constitute financial advice.
Expense ratios of 1.5-2.5% on active mutual funds in India may seem small, but over 20-30 years they compound against you. A direct plan index fund at 0.1-0.3% vs a regular plan active fund at 2% can mean a difference of ₹20-50 lakhs on a ₹10,000/month SIP.
Always choose Direct plans over Regular plans to save 0.5-1% in commissions. Low-cost NIFTY 50 and SENSEX index funds are increasingly popular in India for this reason.
Enter your portfolio value, current expense ratio (check your mutual fund factsheet), a lower comparison ratio (0.1% for index funds), expected return, period, and monthly SIP. See the shocking difference.
📊 How does this compare to a Nifty 50?
⚡ Popular Scenarios
FAQ
What's a good expense ratio?
Index funds: 0.1-0.3%. Always choose Direct plans over Regular to save 0.5-1% in commissions.
Why do fees matter?
1% higher TER on ₹10,000/month SIP over 25 years costs ₹15-20 lakhs.
Direct vs Regular plans?
Direct plans save 0.5-1% in expense ratio. Over 20 years = 15-25% more corpus.
Do active funds justify higher fees?
Most don't. Over 10 years, 80%+ of active large-cap funds in India underperform NIFTY 50. Index funds like UTI Nifty 50 (0.1% TER) or Navi Nifty 50 (0.06%) are hard to beat consistently.
How much does Regular vs Direct cost over 25 years?
₹10,000/month SIP: Regular fund (1.5% TER) = ~₹1.3 crore. Direct fund (0.5% TER) = ~₹1.6 crore. The 1% difference costs you ₹30 lakhs — just for choosing the wrong plan.
How do I switch from Regular to Direct?
You can switch via your AMC's website, apps like Kuvera/Groww/Coin, or by submitting a switch request. Note: switching triggers capital gains tax, so do it strategically or start new SIPs in Direct while holding existing Regular units.
What about NPS fund management charges?
NPS has among the lowest charges in India: 0.01-0.09% fund management + ₹345/year account maintenance. Compared to mutual funds at 0.5-1.5%, NPS is extremely cost-efficient — plus the ₹50,000 extra tax deduction under 80CCD(1B).
How does this compare to a SIP?
Compare your results to investing in a Nifty 50 at ~12% annually. Use this as a baseline to evaluate your investment decision.
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📊 Data source: Standard financial models. Prices and data in this article are reviewed and updated semi-annually. Last update: March 2026.
💸 The Hidden Expense Ratio: How 1.5% Eats Half Your Retirement Corpus
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Created by Amiel Riss | SmartMoney77