High Expense Ratio Is Not Bad For Mutual Funds

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Күн бұрын

Here's why high expense ratio is not a bad thing for a mutual fund.
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Пікірлер: 34

@brijeshkukreja7411 Жыл бұрын

Higher expense ratio = Higher fees and no guarantee of performance. If you get me more returns is never a condition one should look it. Probably best to invest in index mutual funds keeping safety in mind. I have seen a lot of people getting burnt with active mutual fund unless the company is willing to give back the expenses if they don't perforn

@Dave_en 26 күн бұрын

Yes, once the stock becomes overvalued then the fund can't perform well. That's why diversification is needed and provided by index funds. Many actively managed funds charge more fees but fail to perform as per expectation. Few funds such as JM flexicap are good among the active mutual funds. SBI small cap is real crap.

@SANJEEVKUMAR-sj5vx 13 күн бұрын

you mean, the nav price already includes the expense price? plz clarify. If my total value is 1,00,000 and expense ratio is 0.5%, if i withdraw the amount, I will get full money or expense ratio amount will be deducted

@sampatharuna6884 Жыл бұрын

Bro! expense ratio need not be the management fee unless it is stated as management expense ratio. But even then MER can be apart fm expense ratio

@Dave_en 26 күн бұрын

I want guarantee for higher returns if they are charging more. I will eliminate fund manager risk if i get cheaper expense ratio from index funds. With combination of several index funds i can manage the risk and generate more returns than active funds. AMCs are fooling us by charging more and not outperforming the benchmark each year.

@Ro_hitttt Жыл бұрын

Majority of funds also fail to beat benchmark index in long term

@anubhavtomar3499 Жыл бұрын

Can you please tell me how is this relevant to India, many mutual funds are able to beat nifty 50 in both 5-10 years span. I alwasy hear this statement but I am not able to understand it completely

@umeshchandraverma6518 Жыл бұрын

@@anubhavtomar3499 this is what I also want to know

@TheSlimmshadyy Жыл бұрын

@@anubhavtomar3499They don't.

@religionofpeace782 10 ай бұрын

@@anubhavtomar3499 Nifty 50 is the large cap index. Most largecap/bluechip funds were not able to beat the nifty 50 returns for a long time. But its different for midcap index and small cap index. Majority midcap funds and small cap funds have beaten the midcap and small cap indexes.

@samsha2100 10 ай бұрын

This statement of "Fail to Beat Index Funds" is valid for USA/UK stock markets where all the Active Mutual Funds fail to beat Index fund. Where as India is emerging market. Due to this Most of all Active Mutual funds are beating the Index funds in both Short term and Long Term.

@umeshchandraverma6518 Жыл бұрын

Thanks sir this is what I search That expense ratio is included or not in cagr return

@Dave_en 26 күн бұрын

Yes. Both direct and regular plans are shown in the app.

@Vishal_Bass. 2 жыл бұрын

Well said, Exactly my opinion too!

@thamizharasan3925 2 жыл бұрын

Sir always being in English I am from tamilnadu

@S.A.1 Жыл бұрын

Are there passively managed index ETFs in India?

@ShivamShukla-te5ws 2 жыл бұрын

how much expense ratio is ok

@Savage11798 Жыл бұрын

0.05 0.03 0.09

@dlxpro9342 Жыл бұрын

any thing less than 1%

@ALTInvestchannel 11 ай бұрын

@@dlxpro9342 You should look at what the funds giving returns and if beating the benchmark. You investment should never be based on expense ratio of funds only.

@religionofpeace782 10 ай бұрын

@@Savage11798No fund has such low expense ratio 😂 not even the index funds.

@johnbrian8296 9 ай бұрын

@@religionofpeace782 1.75 okay?

@RaviRavi-ez4kz Жыл бұрын

Sorry,one willnt end up with 87.5l for mf which had exp ratio of 1.5 “PER YEAR” and not only once 🤦🏻

@lakshminarasimhannarasimha1338 9 ай бұрын

Valuable insight

@D-SK7942 2 ай бұрын

Higher NAV is good for starting MF

@Dave_en 26 күн бұрын

NAV is not any criteria to select funds. Check AUM, expense ratio, alpha, beta, Sharpe ratio, rolling returns etc to find out the best mutual fund. No such criteria for index funds.