Mutual Fund Expense Ratio: While investing money in mutual funds, it must be seen that what is the cost of your investment in which scheme. The cost of investment can affect your returns.
Mutual Fund Expense Ratio:
While investing money in mutual funds, it must be seen that what is the cost of your investment in which scheme. The cost of investment can affect your returns. In mutual funds, all this is decided by the expense ratio. More or less the expense ratio directly affects your returns. There are many such schemes in the market, which not only have low expense ratio, but have also given strong returns in 3 to 5 years. We have selected some such funds here, in which your cost of investment is low and the history of giving returns is also good.
Know about Expense Ratio
Expense Ratio refers to the expenses incurred on managing your mutual fund investments. Fund houses charge you an annual fee to manage the fund. When you invest money in mutual funds, its management is done by the fund house. A team of his also works for this. At the same time, expenses related to transfer and registrar after investment are also included in the expense ratio.
How can the return increase or decrease?
According to AK Nigam, Director, BPN Fincap, it can be understood that if the expense ratio of a mutual fund scheme is 2 percent and you have invested Rs 1 lakh in it. In this case, you will have to pay Rs 2000 annually for the management of the fund. On the other hand, if the fund gives 10 percent return annually, then your actual return will be 8 percent.
But if the expense ratio of the fund is 1 percent, then your annual fee will be reduced by Rs 1000 i.e. your actual return here will be 9 percent. He says that however, keep in mind that in every condition there is a need to pay less that more or less expense ratio does not guarantee returns. Many a times, funds with higher expense ratio give higher returns than funds with lower expense ratio.
quant tax plan
Expense Ratio: 0.57%
5 Year Return: 24%
Value of 1 lakh in 5 years: 2.95 lakh
Assets: 148 crore
Minimum Investment: Rs 500
Minimum SIP: Rs 500
SBI Smallcap Fund
Expense Ratio: 0.87%
5 Year Return: 23.8%
Value of 1 lakh in 5 years: 2.90 lakh
Assets: 7919 crore
Minimum Investment: Rs 5000
Minimum SIP: Rs 500
Mirae Asset Tax Saver Fund
Expense Ratio: 0.48%
5 Year Return: 23 percent
Value of 1 lakh in 5 years: 2.80 lakh
Assets: 7215 crore
Minimum Investment: Rs 500
Minimum SIP: Rs 500
Axis Smallcap Fund
Expense Ratio: 0.41%
5 Year Return: 21%
Value of 1 lakh in 5 years: 2.65 lakh
Assets: 7215 crore
Minimum Investment: Rs 5000
Minimum SIP: Rs 500
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