Confused about mutual fund numbers? Don't let common myths cost you lakhs. Understand the real difference between NAV and Expense Ratio to boost your wealth.
Net Asset Value (NAV) is the per-unit price of a fund today. Not a performance metric! Low NAV isn't 'cheaper' – growth percentage matters. Don't fixate on the absolute number.
The Expense Ratio is a yearly fee deducted from your fund's assets for management. It chips away at your returns, often unnoticed. Even small differences compound into lakhs over time.
NAV is a snapshot; Expense Ratio is a constant cost. A lower expense ratio almost always means more money in your pocket long-term. Even a 1% difference can mean lakhs!
Actionable tip! Regular plans include commissions (higher expense ratio). Direct plans cut out commissions, giving you significantly lower fees & higher returns. Always choose Direct!
Don't chase low NAVs or NFOs. Never ignore expense ratios for past returns. Switch from Regular to Direct plans. Remember, 'free' advice often comes with hidden costs for YOU!
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