What is Expense ratio in mutual funds and when is it charged?
Mutual Funds charge a fee for managing your money. This fee is referred to as the expense ratio and is expressed in terms of a percentage of the AUM (Assets Under Management). The expense ratio is charged before the scheme declares the daily NAV. It is deducted from the NAV before the daily NAV is announced. The expense ratio for a scheme is disclosed on the respective AMC's website every month as part of the factsheet.
Direct and regular plans under the same scheme will have different expense ratios (lower for direct plans). To learn more, visit tradingqna.com/t/how-costly-are-regular-mutual-funds-compared-to-direct-plans/63599/3.
Still need help?
×
![]()