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The Mutual Fund Fees Calculator helps Indian investors calculate the total cost of investing in mutual funds, including expense ratio, brokerage charges, and securities transaction tax (STT). Understanding these fees is crucial for accurate investment planning and returns calculation.
The calculator uses the following formula:
Where:
Explanation: The calculator provides a comprehensive view of all major fees associated with mutual fund investments in India, helping investors understand the true cost of their investments.
Details: Accurate fee calculation is essential for understanding the real returns from mutual fund investments. Even small percentage differences in fees can significantly impact long-term wealth accumulation due to compounding effects.
Tips: Enter investment amount in INR, expense ratio as percentage (e.g., 1.25 for 1.25%), and brokerage charges in INR. All values must be positive numbers.
Q1: What is expense ratio in mutual funds?
A: Expense ratio is the annual fee charged by mutual funds to cover operational expenses, expressed as a percentage of the fund's average net assets.
Q2: How is STT calculated for mutual funds?
A: For equity mutual funds, STT is 0.001% of the redemption amount. For debt funds, no STT is applicable on redemption.
Q3: Are there any other hidden charges?
A: Besides these, investors may encounter exit loads, transaction charges, and GST on management fees. Always read the scheme information document carefully.
Q4: How do fees impact long-term returns?
A: Higher fees can significantly reduce compound returns over time. A 1% difference in annual fees can reduce final corpus by 15-20% over 20 years.
Q5: Are direct plans better than regular plans?
A: Direct plans have lower expense ratios as they eliminate distributor commissions, potentially leading to higher returns over the long term.