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What does Expense ratio mean?

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 for a scheme is disclosed on the respective AMC's website every month as part of the factsheet.

A direct plan and a regular plan under the same scheme will have different expense ratios (lower for direct plans). Read this post on TradingQ&A to learn more about expense ratios and their impact on your investments.