Mutual Fund Expense Ratio Impact
A 1.5% difference in expense ratio looks tiny on a brochure. Over 20 years it eats roughly a fifth of your corpus.
Your numbers
Your result
₹15,000/month for 20 years at 12% gross gives you ₹1.44 crore in a 0.3% expense ratio fund, vs ₹1.18 crore in a 1.8% one. The "small" 1.50% difference costs you ₹26.02 lakh, which is 22% of the higher-expense fund's corpus.
- Low-expense corpus
- ₹1.44 crore
- High-expense corpus
- ₹1.18 crore
- Difference
- ₹26.02 lakh
- As a % of high-expense corpus
- 22.1%
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Typical expense ratios in 2026 India
- Index funds (Nifty 50, Nifty Next 50): 0.10-0.50% Direct, 0.40-1.00% Regular.
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- Sectoral / thematic funds: 1.50-2.20% Direct, 2.30-2.50% Regular.
- Debt mutual funds: 0.20-0.80% Direct, 0.80-1.50% Regular.