How much does a 1% mutual fund fee cost over 20 years?

On a ₹50 lakh investment at 12% gross CAGR over 20 years, a 1% annual fee reduces your final corpus from ~₹4.83 Cr to ~₹4.06 Cr — a difference of ₹77 lakh. The fee appears small but compounds against you over time.

What is the difference between direct and regular mutual funds in India?

Regular mutual fund plans have an expense ratio 0.5–1.5% higher than direct plans due to distributor commissions. Over 20 years on ₹10 lakh, this difference can compound to lakhs in foregone returns. Direct plans are available through fund houses, SEBI-registered advisors, and platforms like MF Central.

Fee Destroyer — Real Cost of Mutual Fund Expense Ratios | Clearmind

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Starting corpus (₹)

Gross return: 15%

Annual fee: 1%

Horizon: 20 years

Before fees

₹8.18 Cr

15% CAGR · 20y

After 1% fee

₹6.87 Cr

14.00% net · 20y

Stolen by fees

−₹1.31 Cr

16.0% of potential wealth

Gross (15%)Net after 1% fee (14.0%)

Fee comparison — 20y horizon

Fee %	Net CAGR	Final corpus	Lost to fees
0%	15.00%	₹8.18 Cr	—
0.5%	14.50%	₹7.50 Cr	−₹68.29 L
1%	14.00%	₹6.87 Cr	−₹1.31 Cr
1.5%	13.50%	₹6.29 Cr	−₹1.89 Cr
2%	13.00%	₹5.76 Cr	−₹2.42 Cr
2.5%	12.50%	₹5.27 Cr	−₹2.91 Cr
3%	12.00%	₹4.82 Cr	−₹3.36 Cr

Illustrative only. Fee models vary and may be performance-based, tiered, or fixed. This calculator shows a simplified drag effect. Not investment advice.