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Understanding Expense Ratio

A fund’s expense ratio is deducted from its NAV on a daily basis. Find out more…

I want to know how the expense ratio is charged for investors. Is it charged every year?
-Behram Wadia

The expense ratio is deducted from a fund's NAV on a daily basis. The NAV of a fund changes every day and is calculated post expenses. The expense ratio for equity funds has been revised recently, but it will generally be around 2.5 per cent annually. Equity fund investors also have to bear another expense in the form of an exit load, which is levied on redemptions of units that are less than a year old.



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