An expense ratio is a fee that mutual funds charge for managing your investments. This fee represents a percentage of the scheme's Assets Under Management (AUM).
How expense ratio works
The Asset Management Company (AMC) charges the expense ratio before announcing the daily Net Asset Value (NAV). The company deducts this fee from the NAV before declaring the daily price. The expense ratio for each scheme is published monthly as part of the factsheet on the respective AMC's website. You can also find the expense ratio of any mutual fund scheme on Coin.
Did you know? Direct and regular plans under the same scheme have different expense ratios. Direct plans charge lower expense ratios compared to regular plans.