Bhuvan
October 23, 2017, 9:15am
3
There is a handy savings calculator on the Coin with which you can estimate savings against regular funds.
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%.
Firstly disclaimer. This calculation is assuming your expected returns of 15% CAGR. If it is lesser, the savings will also be lesser.
But if markets return 15%, yes 28lks is what you would save on just a Rs 5000 SIP by investing into direct mutual funds.
Regular mutual fund has expense ratio of almost 1.5% higher for regular fund in this case. This means everyday 1.5%/250 extra is debited as expenses to a regular fund as compared to a direct fund (250 trading days in a year). If 1.5%/250 is r…
