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Three checks before you trust the TER on a fund factsheet.

Same fund can read 1.65 pct on the brochure and 178 bps on the receipt depending on which line you choose to believe. Run these three before you tell yourself the cost is fine.
01

Pull the Direct plan TER too, not just the Regular.

The gap between Regular and Direct of the same fund is the distributor commission baked into the price you are paying. On a typical large-cap active fund that gap is 60 to 80 bps. If you are not getting advice worth that much every year, you are tipping someone for a screen you could read yourself.

02

Look up the portfolio turnover.

Sitting just below the TER on every factsheet. Active funds rotate 30 to 60 pct of holdings a year. The brokerage and STT on that churn comes out of the NAV silently, not on a separate line on your statement. High turnover plus a high TER is paying for activity twice.

03

Compound the drag, do not just multiply it.

178 bps a year on a ten-lakh corpus is not Rs 17800 for five years. It is closer to Rs 95000 of forgone compounding. Cost is the only line that compounds against you with the same patience your returns compound for you.

A 1.65 pct fee feels rounding-error small until you stack what sits underneath it. Then it stops being a fee and starts being a drag. The receipt is always longer than the brochure.
Stack your fund's true cost against a systematic alternative on the RupeeCase Compare page.
rupeecase.com / compare