Expense ratios matter from "summary" of Let's Talk Mutual Funds by Monika Halan
Expense ratios matter. They are an important factor to consider when investing in mutual funds. An expense ratio is the annual fee that funds charge their shareholders. It includes management fees, administrative costs, and other operating expenses. This fee is deducted from the fund's assets, reducing the returns that investors receive. Lower expense ratios mean more money stays in your pocket. For example, if you invest Rs 1,00,000 in a fund with an expense ratio of 1%, you would pay Rs 1,000 in fees each year. If you invest in a fund with an expense ratio of 0.5%, you would only pay Rs 500 in fees. Over time, these fees can add up and have a significant impact on your returns. When comparing mutual funds, ...
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