A cheaper expense ratio is not always better!
A lot of people compare expense ratios while selecting a mutual fund and deduct the expense ratio from the mutual fund returns before selecting!
However, Mutual funds show Total Returns which is calucalted after considering the impact of expense ratio! Hence, you can compare the mutual funds in same category as they are NET returns!
This is especially important in case of Index funds, people choose index funds which have the lowest expense ratio. However, despite having a higher expense ratio if the fund is consistently giving better returns then that fund is actually better than the index funds with a cheaper expense ratio (assuming other things are same)
#mutualfund #investing #anushkarathod #personalfinance #expenseratio
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