Expense Ratio Impact (India) – Fund Returns Sensitivity & Cost Effect

Inputs

Adjust assumptions to compare fee drag.

Initial Investment (₹) ₹ Lump sum today Gross Annual Return (%) % Before fees (assumption)

Expense Ratio 1 (%) % Lower = better Expense Ratio 2 (%) % Compare alternative

Duration (Years)

Range 1–40 • Current: 10y

Net rate = Gross − Expense. Lower fee leaves more principal to grow each year causing divergence.

What is an Expense Ratio?

Annual percentage the fund deducts for operating costs. It reduces the return you actually receive.

Persistent small differences compound into meaningful long‑term wealth gaps.

Automatically updates.

Final Value (ER 1) ER1

–

Net Rate: –

Final Value (ER 2) ER2

–

Net Rate: –

Fee Drag (₹)

–

Absolute gap

Fee Drag (%)

–

Relative gap

Yearly values

Methodology

Value grows each year at (Gross − Expense). Two series (ER1 & ER2) diverge over the chosen horizon.

Fee Drag = difference in final values; percentage uses the lower final value as base.

Assumptions