Hi, I wanted to know how much amount (not percentage) do I pay to if for example I have an SIP of 5000 for 1 year and the return on that after end of 3 years is 12%. Can you explain me the exact math. Do the ETF’s also follow the same math?
The NAV of MF is net of expenses. The expenses % is annual but charged daily. Use this to calculate the expense in amount. If you invest in regular plans, then atleast the distributor commission paid (in amount) is detailed in twice a year statement. I am not sure if you hold them in demat you get those statements or for that matter in direct plans.
Your best bet is to calculate based on the expense ratio %age applied on your balance and holding period.
The calculation remains the same for ETFs, but ETFs generally have very low expense ratios compared to MFs. For example, the expense ratio of the SBI Nifty 50 ETF is 0.20%.
