Mutual Fund Fee Eater
Enter your SIP and compare two expense ratios — watch how a "tiny" 1% fee compounds into lakhs lost.
Runs entirely in your browser — your numbers never leave this page.
How it works
An expense ratio is skimmed off your returns every year — and like returns, it compounds:
- The math: a 12% gross return at 0.15% fee = 11.85% net; at 1.5% fee = 10.5% net. Over 20 years on Rs 20,000/month SIP, that 1.35% gap eats roughly a quarter of your final corpus.
- Regular vs direct: the same fund has two plans — regular (with distributor commission, ~1%+ higher fee) and direct. Same portfolio, different price.
- Active vs index: most active large-cap funds fail to beat their index after fees over 10+ years — you're paying extra for underperformance.
- When fees matter less: short horizons and debt funds, where the return base is small. They matter most in long equity SIPs.
- Check yours: your fund's expense ratio is on its factsheet — if you're in a regular plan, switching to direct is usually one form.
Frequently asked questions
What is expense ratio?
The yearly fee a mutual fund charges, as a % of assets — deducted daily from the NAV. You never "pay" it; it just silently reduces returns.
How much does a 1% fee cost over 20 years?
Roughly 20-25% of the final corpus on a long SIP. Rs 20,000/month at 12% for 20 years: ~Rs 2 crore at 0.15% fee vs ~Rs 1.55 crore at 1.5%.
Direct vs regular mutual funds?
Same fund, same portfolio — direct plans skip distributor commission so the expense ratio is ~1% lower. Always prefer direct.
Are index funds cheaper?
Yes — typically 0.1–0.3% vs 1–2% for active regular plans. That gap is the single most reliable predictor of long-term outcome.
Do fees matter in debt funds?
Less in absolute rupees, but more relative to returns — a 1% fee on a 7% return eats 14% of your gains.
Can I switch from regular to direct?
Yes — redeem and reinvest, or switch between plans. Note: switching triggers capital gains tax on the redeemed units.
Is a high fee ever justified?
Rarely in large-cap. In some small-cap or specialized strategies, persistent outperformance can cover the fee — but verify with 10-year rolling returns, not 1-year.
Where do I find my fund's expense ratio?
The monthly factsheet on the AMC website, or your broker's fund page. Compare direct-plan ratios, not regular.
Do ETFs have lower fees?
Usually — 0.05–0.3%. But you need a demat account and must buy at market price (no SIP automation at some brokers).
Does the fee compound?
Yes — that's the killer. Each year's fee is charged on a bigger base, so the lifetime cost grows faster than linear.