Mutual Fund Expense Ratio Impact Calculator
See how mutual fund fees reduce your long-term wealth. Compare Direct vs Regular plans, analyze the real cost of expense ratios, and make informed investment decisions.
| Year | Regular Plan | Direct Plan | Index Fund | Difference |
|---|---|---|---|---|
| 1 | ₹1,73,299 | ₹1,74,691 | ₹1,75,392 | ₹2,093 |
| 2 | ₹2,54,274 | ₹2,58,026 | ₹2,59,925 | ₹5,651 |
| 3 | ₹3,43,727 | ₹3,51,003 | ₹3,54,709 | ₹10,982 |
| 4 | ₹4,42,548 | ₹4,54,741 | ₹4,60,987 | ₹18,439 |
| 5 | ₹5,51,716 | ₹5,70,482 | ₹5,80,152 | ₹28,436 |
| 6 | ₹6,72,316 | ₹6,99,617 | ₹7,13,766 | ₹41,450 |
| 7 | ₹8,05,544 | ₹8,43,695 | ₹8,63,583 | ₹58,039 |
| 8 | ₹9,52,723 | ₹10,04,446 | ₹10,31,566 | ₹78,843 |
| 9 | ₹11,15,313 | ₹11,83,799 | ₹12,19,919 | ₹1,04,606 |
| 10 | ₹12,94,929 | ₹13,83,906 | ₹14,31,111 | ₹1,36,182 |
| 11 | ₹14,93,353 | ₹16,07,169 | ₹16,67,912 | ₹1,74,559 |
| 12 | ₹17,12,554 | ₹18,56,268 | ₹19,33,428 | ₹2,20,874 |
| 13 | ₹19,54,709 | ₹21,34,193 | ₹22,31,140 | ₹2,76,431 |
| 14 | ₹22,22,220 | ₹24,44,278 | ₹25,64,952 | ₹3,42,732 |
| 15 | ₹25,17,744 | ₹27,90,247 | ₹29,39,242 | ₹4,21,498 |
Equity Funds (Regular)
Actively managed equity funds
Equity Funds (Direct)
Direct plans without distributor commission
Debt Funds
Fixed income securities
Index Funds
Passive tracking of indices
Direct vs Regular Plan Difference
Average savings with direct plans
What is an expense ratio?
The expense ratio is the annual fee charged by mutual funds to cover operating expenses, expressed as a percentage of assets under management. It directly reduces your returns.
How much difference does 1% make?
A 1% difference in expense ratio can reduce your wealth by 20-30% over 20-30 years due to compounding. On a ₹10 lakh portfolio over 20 years, it could mean ₹5-10 lakhs less wealth.
Should I always choose the lowest expense ratio?
Not always. Consider the fund's performance, consistency, fund manager track record, and after-expense returns. However, for index funds, always choose the lowest expense ratio.
What are Direct vs Regular plans?
Direct plans have lower expense ratios (0.5-1% less) as they don't include distributor commissions. Investing directly through AMC websites or apps can save significant money over time.
Are there any other hidden charges?
Watch for exit loads (1-2% if redeemed early), transaction charges, and Securities Transaction Tax (STT). These add to your total cost beyond the expense ratio.
Total Invested: ₹10,00,000
Regular Plan
₹25,17,744
Fees Paid: ₹50,355
Return: 151.77%
Direct Plan
₹27,90,247
Fees Paid: ₹27,902
Return: 179.02%
Index Fund
₹29,39,242
Fees Paid: ₹14,696
Return: 193.92%
Every 0.5% in fees reduces your wealth by approximately 19.5% over 15 years
Direct plans can save you ₹2,72,503 over 15 years
Index funds with expense ratios below 0.5% are typically the most cost-effective option
• Always choose Direct plans over Regular plans
• For passive investments, prioritize lowest expense ratio
• For active funds, evaluate after-expense returns
• Review expense ratios annually
• Consider index funds for long-term core holdings
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