What does 1.8 percent TER actually cost you?
Expense ratios and performance fees look small as percentages. Compounded over a decade or two, they become the single largest cost of your investing journey. Move the sliders below.
Defaults match the worked example on the pricing page: a four week rebalance, so about 13 a year, with 30% of the portfolio turning over each time. Change them to match the index you are looking at. Effective RupeeCase cost at these settings: 0.78% of portfolio value a year.
Over your selected horizon, the difference between a mutual fund and RupeeCase is about ₹0.
Move the sliders to see which side the difference falls on.
How this is calculated
Mutual Fund. Effective CAGR = Gross CAGR minus TER. Final value = starting amount × (1 + effective CAGR) ^ years. Fee paid = gross final minus net final. A typical active equity fund TER in India ranges 1.5 to 2.25 percent; we use 1.8 percent.
PMS. 2 percent management fee on average AUM each year, plus 20 percent of return above a 10 percent hurdle. We model this as an effective fee drag applied to the CAGR and compute the fee difference against an equivalent no-fee portfolio. Actual PMS fee structures vary by manager.
RupeeCase. 0.2% of the value actually traded at each rebalance. No percentage of AUM, no performance fee, no exit load, no subscription. The model below assumes the index rebalances the number of times a year you set and turns over the share of the portfolio you set at each one, so the fee works out to turnover × rebalances × 0.2% of portfolio value a year, deducted from the CAGR the same way the fund TER is.
Assumptions: lump sum investment, no additional contributions, no taxes (same for all three so net of tax comparison is identical), all fees modelled as an annual drag on the CAGR. Rebalance count and turnover are your assumptions, not a RupeeCase forecast: real turnover varies by index and by cycle, and a rebalance that changes nothing costs nothing. This is an illustrative model. Your actual fees depend on your specific fund, PMS, broker and index.