Examples of Expense Ratio

What is Expense Ratio?

Expense Ratio is the annual fee charged by the asset management company for the management of funds. The expense ratio is a particular percentage of funds that is to be paid to the fund manager and it varies from fund to fund. Sometimes even when two funds have similar features and growth rates the deciding factor for net returns is this expense ratio. For any investor, the expense ratio is like the fees that have to be paid to AMC to hold their own funds....

What are the Components of Expense Ratio

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Restrictions Imposed by SEBI on Expense Ratio

There are lot of components to expense ratio which adds together. These are basically all those expenses which the asset management companies have to incur in order to manage funds. As per regulations by SEBI asset management companies are required to disclose all these expenses to there customers in a period of every six months. Following are the main heads of components which are part of expense ratio:...

How does the Expense Ratio impact Fund Return?

Assets Under Management by the AMC (In crore ₹) Total Expense Ratio for Equity Funds (in %) Total Expense Ratio for Debt Funds ( in %) 0-500 2.25 2 500-750 2 1.75 750-2,000 1.75 1.5 2,000-5,000 1.60 1.35 5,000-10,000 1.50 1.25 10,000-50,000 1.5+ 0.05 (for every increase of ₹5,000 crores of daily net assets) 1.25+.05 (for every increase of ₹5,000 crores of daily net assets) 50,000+ 1.05 0.80...

Examples of Expense Ratio

Expense ratio impacts your funds on basis of the category in which you hold mutual funds, some impacts can be applicable to all and some might differ case to case. Overall impacts are as follows:...