Why a 1% expense ratio difference can cost mutual fund investors lakhs
A 1% increase in the expense ratio for regular mutual fund schemes can lead to a major drop in your total wealth in the long run. If you invest ₹10,000 every month via SIP for 20 years, the gap between a 12% return in a direct plan and an 11% return in a regular plan could leave you with about ₹10.34 lakh less. The power of compounding means that what looks like a minor yearly fee can grow into a massive loss over time.
by shortkt.com✓