Mutual Fund CAGR Graph - Before or After Deduction of Expense Ratio

Zerodha Coin - Direct MF
1

Hi

The CAGR returns graph that we see for any mutual funds that we search from the Coin console → is it after deduction of expense ratio or before deduction of expense ratio?

I read in other places that it is AFTER deduction of expense ratio however some are saying it is before deduction of expense ratio.

Need better clarity as that will allow be to better choose mutual funds.

2

Hi @thethinker, The CAGR returns that you see for mutual funds on Coin/Console or other platforms are shown after deduction of the expense ratio. This is because the NAV (Net Asset Value) of a mutual fund, which is used to calculate returns and CAGR, is declared after accounting for the expense ratio.

So, any return, whether it’s the daily change or long-term CAGR like 1Y, 3Y, or 5Y, that you see based on NAVs is already net of the expense ratio.

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