What is the Total Expense Ratio (TER)?

TER is the annual fee charged by a mutual fund to cover its operating expenses, including management fees, administration, and marketing. It is expressed as a percentage of the fund's daily net assets.

Why is the expense ratio higher for Regular plans?

Regular plans include a commission paid by the AMC to the distributor or broker. Direct plans bypass these intermediaries, leading to a lower TER and higher returns for the investor.

What is a 'good' expense ratio for an index fund?

For a Nifty 50 index fund in India, a TER between 0.10% and 0.30% is generally considered competitive. Anything higher may be excessive for a passive product.

Expense Ratio Calculator

Visualize how management fees (TER) and distributor commissions impact your long-term wealth compounding.

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Quick Summary: Expense Ratio Calculator

The Expense Ratio Calculator quantifies how the Total Expense Ratio (TER) eats into your investment returns. A difference of just 1% in TER (typical between Regular and Direct plans) can result in a 25-30% smaller corpus over 25 years. This tool helps you identify the 'wealth leakage' caused by high fees and distributor commissions in the Indian mutual fund industry.

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Regulatory Disclaimer

Last verified May 2026

Statutory Disclosure

Nature:Calculator platform and is NOT a SEBI-registered Investment Adviser. All calculations are indicative.

Risk:"Investments in securities market are subject to market risks. Read all related documents carefully before investing."

Consult a SEBI-registered IA or CA for personalised advice.

9 out of 10 traders in F&O incurred net losses (SEBI 2023). Tax estimates based on IT Act 2025. Trezoriq is not liable for financial decisions based on results.