Wealth Destruction

Expense Ratio Calculator

See the devastating impact of mutual fund commissions. A "tiny" 1% extra fee can destroy millions in wealth over 20 years.

Investment & Fees

Sold by bank RMs and distributors.

Bought directly via AMC or apps like Zerodha.

Gross return before any fees are deducted.

The Cost of "Regular" Plans

Total Wealth Lost

₹39,52,569

Paid as commission to the distributor.

Corpus in Direct Plan₹3,06,90,558
Corpus in Regular Plan₹2,67,37,989

The "Regular" Mutual Fund Trap

  • What is Expense Ratio? It is the annual fee charged by the AMC (Asset Management Company) to manage your money. It is deducted from your returns automatically before the NAV is published.
  • Direct vs Regular: "Regular" plans are sold by bank Relationship Managers (RMs) and local distributors. They carry a higher expense ratio (often 1.5% to 2.0%) because the AMC pays a trailing commission to the distributor every year. "Direct" plans have zero commissions and thus lower expense ratios (often 0.5%).
  • The 1% Illusion: A 1% difference in fees sounds small, but over 20 years, compound interest turns that 1% fee into millions of rupees of lost wealth. As seen in the calculator above, you could lose 20% of your final corpus simply by investing through a bank RM instead of a Direct App.
  • How to Switch: Check your portfolio. If the fund name contains the word "Regular", you are paying commissions. Stop the SIP, create an account on a Direct Mutual Fund platform (like Coin, Kuvera, or Groww), and start a new SIP in the "Direct" version of the exact same fund.