Quick Summary: Index vs Active Solver

The Index vs Active Solver helps you decide if an active fund's potential 'Alpha' (outperformance) justifies its higher Total Expense Ratio (TER). In many large-cap categories, active funds struggle to beat index funds after accounting for the 1-1.5% fee difference, making low-cost passive investing more efficient for long-term wealth creation.

How to use the Index vs Active Solver

  1. Input Investment Details

    Enter your monthly SIP amount and intended investment tenure.

  2. Set Expense Ratios

    Provide the annual TER for both the active fund and the target index fund.

  3. Adjust Alpha Assumption

    Enter the expected percentage by which the active fund might beat the market index.

  4. Review Wealth Difference

    Compare the final maturity amounts to see the real impact of fees on your compounding.

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Regulatory Disclaimer

Last verified May 2026

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.