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  • Date Value of Investment On The Day Expense Ratio 1st Jan 2021 3rd Mar 2021

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    Nayana Murty
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    The document provides an example to explain expense ratio using a mutual fund with a 1.25% expense ratio. It shows that if an investment of Rs 100,000 grows to Rs 100,500 on the first day, the expense charged would be Rs 3.44, calculated as 1.25% of the investment value divided by 365 days. Similarly, if the value grows to Rs 100,125 on the third day, the expense charged would be Rs 3.42.

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    The document provides an example to explain expense ratio using a mutual fund with a 1.25% expense ratio. It shows that if an investment of Rs 100,000 grows to Rs 100,500 on the first day, the expense charged would be Rs 3.44, calculated as 1.25% of the investment value divided by 365 days. Similarly, if the value grows to Rs 100,125 on the third day, the expense charged would be Rs 3.42.

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    7 views2 pages

    Date Value of Investment On The Day Expense Ratio 1st Jan 2021 3rd Mar 2021

    Uploaded by

    Nayana Murty
    The document provides an example to explain expense ratio using a mutual fund with a 1.25% expense ratio. It shows that if an investment of Rs 100,000 grows to Rs 100,500 on the first day, the expense charged would be Rs 3.44, calculated as 1.25% of the investment value divided by 365 days. Similarly, if the value grows to Rs 100,125 on the third day, the expense charged would be Rs 3.42.

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    • Let us understand the expense ratio meaning with an expense ratio example, assuming your

    mutual fund scheme’s expense ratio is 1.25%. If your investment in this fund is Rs 1,00,000, and
    assuming your investment value grows to Rs 1,00,500 and 1,00,125 on two subsequent days, this
    is how much expense ratio you pay on each day-

    Date Value of investment on the day Expense Ratio

    1st Jan 2021 Rs 1,00,500 (1.25%/365)*1,00,500= Rs 3.44

    3rd Mar 2021 Rs 1,00,125 (1.25%/365)*1,00,125= Rs 3.42


    Standard deviation

    Month (2020) Returns (%) (hypothetical)

    September 14

    October -8

    November 9

    December 6

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