A small phrase that quietly costs a lot of money
What 2 and 20 takes from a Rs 25L corpus over 10 years
Rs 38L
Compounded gap . 18 percent gross to 14 percent net
Mgmt fee 2 percent . Perf fee 20 percent above 10 percent hurdle . GST 18 percent on both
Two and twenty does not sound like much. The compounder disagrees.
Read only the headline CAGR and 18 percent looks like 18 percent. Run the fee stack and the investor sees 14. Ten years later that four-point gap is bigger than the original ticket.
Swipe . the fee stack laid out line by line →