Is expense ratio charged every year
- how is mutual fund expense ratio calculated
- is mutual fund expense ratio calculated on profit
- how are mutual fund expense ratios paid
- how often are mutual fund expense ratio charged
Etf expense ratio calculator!
Low expense ratio mutual funds
An expense ratio is the annual cost of managing and operating an investment fund, like a mutual fund or exchange-traded fund (ETF). It’s expressed as a percentage and represents the fees and expenses investors pay.
A lower expense ratio is generally better, as it means lower costs for investors.
What is the Expense Ratio?
The expense ratio is the percentage that denotes the amount of money you are paying to the AMC as a fee to manage your investments.
In other words, it is the per-unit cost for running and managing the mutual fund.
Expense ratio exampleThe expense ratio differs from one mutual fund to another. You do not pay for this expense ratio separately; it is calculated as a percentage of the daily investment value.
For example, if you invest Rs 5000 in a mutual fund with an expense ratio of 2%, then (2%/365=0.0054%) will be deducted from the investment value each day.
The per-day levying of the expense ratio ensures that you only pay for the period you stay invested. But this deduction of the expense ratio is lowering your returns by a tiny amount every day. Hence, a mutual fund scheme
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