Rs 10000 a month. One year.
What each one actually charges.
| Cost line |
Index fund |
ETF |
| Expense ratio |
Rs 230 |
Rs 65 |
| Spread plus impact . per buy |
Rs 0 |
Rs 240 |
| Demat account . flat |
Rs 0 |
Rs 300 |
| All-in . year one |
Rs 230 |
Rs 605 |
The expense ratio is charged once a year on what you hold. The spread and the demat charge are paid every time you buy and just for having the account. A monthly SIP buys twelve times a year, so the per-trade costs stack up while the headline fee stays quiet.
Illustrative. Rs 10000 monthly SIP, one year, Rs 120000 deployed. ETF spread plus market impact assumed 0.20 pct per buy, demat AMC Rs 300 flat. Index fund transacts at NAV with no spread or demat. Brokerage assumed zero on both. Figures rounded.