1. Accrued expenses, payables and other liabilities are the components that form the total expense ratio (TER) of a mutual fund.
2. Expenses include operating expenses, management expenses, distribution and marketing expenses, transfer agent fees, custodian fees, audit fees, etc. which are all included in daily NAV calculation.
3. Usually, larger the fund size, lower is the total expense ratio.
4. Between funds in same category, with similar returns, choose the one with a lower expense ratio.
5. A Direct plan has a lower expense ratio than a Regular plan as it does not include commissions paid to distributors.
6. This eventually results in higher returns in the long run as more of investor's money remains invested.
7. One of the best performance predictors among peer funds is not their past returns or star ratings, but lower expense ratio, especially within debt funds.
8. If two peer funds give 9% CAGR and 10% CAGR due to their 1% TER difference, then retirement corpus of, say, 1 crore invested in each will give a retired person monthly SWP amounts of 87,725 and 93,660 resp. during 20 years of his retired life.
2. Expenses include operating expenses, management expenses, distribution and marketing expenses, transfer agent fees, custodian fees, audit fees, etc. which are all included in daily NAV calculation.
3. Usually, larger the fund size, lower is the total expense ratio.
4. Between funds in same category, with similar returns, choose the one with a lower expense ratio.
5. A Direct plan has a lower expense ratio than a Regular plan as it does not include commissions paid to distributors.
6. This eventually results in higher returns in the long run as more of investor's money remains invested.
7. One of the best performance predictors among peer funds is not their past returns or star ratings, but lower expense ratio, especially within debt funds.
8. If two peer funds give 9% CAGR and 10% CAGR due to their 1% TER difference, then retirement corpus of, say, 1 crore invested in each will give a retired person monthly SWP amounts of 87,725 and 93,660 resp. during 20 years of his retired life.