Mutual Fund Calculator

Index funds typically charge 0.03-0.20%. Actively managed funds charge 0.50-1.50%. Anything above 1% should be scrutinized carefully. Lower expense ratios leave more of your returns in your pocket.

A 1% expense ratio on a $100,000 portfolio growing at 8% for 30 years costs approximately $150,000 in lost wealth compared to a 0.1% expense ratio fund. Fees compound against you over time.

SIP (Systematic Investment Plan) involves investing a fixed amount regularly (usually monthly) regardless of market conditions. It automates investing and benefits from dollar-cost averaging.

ETFs typically have lower expense ratios, tax advantages, and intraday trading flexibility. Mutual funds offer automatic investing, no trading commissions, and end-of-day pricing. Both are valid; the best choice depends on your preferences.

Load funds charge an upfront or backend sales commission (3-6%). No-load funds have no sales charges. Always prefer no-load funds — load fees significantly reduce returns with no proven performance benefit.

Yes. Mutual funds invest in market securities that can decline in value. However, diversification reduces risk compared to individual stocks. Bond funds can also lose value when interest rates rise.

NAV (Net Asset Value) is the price per share of a mutual fund, calculated daily by dividing total assets minus liabilities by outstanding shares. NAV changes daily based on the fund's underlying holdings.

Mutual funds distribute capital gains and dividends to shareholders, which are taxable. Long-term gains are taxed favorably (15-20%). Funds in tax-advantaged accounts (IRA, 401k) defer taxes until withdrawal.

Research consistently shows that most active funds underperform their benchmark index over long periods, especially after fees. Low-cost passive index funds outperform most active funds over 10+ year horizons.