Low-cost mutual fund: Explore the top 5 large cap schemes with a low expense ratio. Before you wonder what an expense ratio is, here is what it means. An expense ratio is the annual fee a fund charges to manage your investments and cover operational costs. It is represented as a percentage of your total investment.
Even though it is expressed as a yearly percentage (e.g., 1.0%), the deduction is made daily. The fund’s managers automatically subtract a tiny fraction of this fee from the fund’s assets before declaring the daily Net Asset Value (NAV).
This fee represents a percentage of the scheme’s Assets Under Management (AUM). A lower expense ratio means more of your money stays invested and compounds over time.
The company deducts this fee from the NAV before declaring the daily price. The expense ratio for each scheme is published monthly as part of the factsheet on the respective AMC’s website.
Low-cost mutual funds: 5 large cap schemes with low expense ratios; below 1% – LIST
Mirae Asset Large Cap Fund – Direct Plan
Kotak Large Cap Fund – Direct Plan
Axis Large Cap Fund – Direct Plan
Invesco India Largecap Fund – Direct Plan
SBI Large Cap Fund – Direct Plan
(Source: Fund Fact Sheet)
(Disclaimer: The above article is meant for informational purposes only, and should not be considered as any investment advice. ET NOW DIGITAL suggests its readers/audience to consult their financial advisors before making any money related decisions.)
