While investing in mutual funds most of the people focus on the returns of the fund. In that case, did you know that the expenses incurred in the fund also affect your total returns? For the same reason it is important to understand the expense ratio i.e. the annual expenses of the fund before investing.
If you are planning to invest in the scheme of Nippon India Mutual Fund, this information may be useful for you. Nippon India Mutual Fund has four such schemes, which have an expense ratio of less than 1%. Notably, all these four schemes have given a compound annual return (CAGR) of over 17 percent over the past 7 years.
What is Expense Ratio?
First of all let’s understand, what is this expense ratio after all? A mutual fund company charges a small fee for managing the money received from investors and running the fund. It involves fund management, administration and other operational expenses. This same cost is called expense ratio. It is expressed as a percentage and is calculated based on the total assets of the fund.
For example, if a mutual fund has an expense ratio of 1 percent, an investment of Rs 10,000 incurs an annual expense of approximately Rs 100. This amount is not directly deducted from the investor’s account separately but its effect is incorporated in the Net Asset Value (NAV) of the fund. A lower expense ratio generally means lower expenses for the investor. However, one should not decide to invest in a fund just by looking at low expense ratio.
01. Nippon India Small Cap Fund – Direct Plan
The first name in this list is Nippon India Small Cap Fund. The scheme has given a CAGR return of 25.28 percent in the last 7 years. Its expense ratio is 0.52 percent.
- Launch Date: 1 January 2013
- Total assets: Rs 80,906 crore
- NAV: Rs 193.8273
- Expense ratio: 0.52 percent
- 7-year CAGR: 25.28 percent
- Minimum investment: Rs 5,000
- Minimum SIP: Rs 100
02. Nippon India Growth Mid Cap Fund – Direct Plan
At number two is Nippon India Growth Mid Cap Fund. The scheme has given a CAGR return of 22.22 percent in the last 7 years. Its expense ratio is 0.59 percent.
- Launch Date: 1 January 2013
- Total assets: Rs 50,176 crore
- NAV: Rs 4,605.8732
- Expense ratio: 0.59 percent
- 7-year CAGR: 22.22 percent
- Minimum investment: 100 rupees
- Minimum SIP: Rs 100
03. Nippon India Multi Cap Fund – Direct Plan
The third name in this list is Nippon India Multi Cap Fund. The fund has given a CAGR return of 17.85 percent in the last 7 years. Its expense ratio is 0.59 percent.
- Launch Date: 1 January 2013
- Total assets: Rs 53,767 crore
- NAV: Rs 308.6238
- Expense ratio: 0.59 percent
- 7-year CAGR: 17.85 percent
- Minimum investment: 100 rupees
- Minimum SIP: Rs 100
04. Nippon India Power and Infra Fund – Direct Plan
At number four is Nippon India Power and Infra Fund. The scheme has given a CAGR return of 21.59 percent in the last 7 years. Its expense ratio is 0.80 percent.
- Launch Date: 1 January 2013
- Total assets: Rs 7,867 crore
- NAV: Rs 382.0159
- Expense ratio: 0.80 percent
- 7-year CAGR: 21.59 percent
- Minimum investment: Rs 5,000
- Minimum SIP: Rs 100
Note: The information provided here is for information only. TV9 Gujarati does not in any way advise investing or selling in shares, gold and silver, mutual funds and IPOs. Investing in the market involves potential risk. Always consult your financial advisor or market expert before investing.
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