Mutual fund Returns

[ashishck]

In India, NAV displayed are net of Expenses. The Fund expenses are shown just on an FYI basis. All websites calculate returns based on NAV values, so those are also net of expenses.
If you redeem, what you will get is Units*NAV, plain and simple. It doesn't matter if the fund expense is .5% or 10%.
Note that you may pay some brokerage charges depending on the channel through which you purchased, exit loads(many funds charge 1% if redeemed before a year), but these are not Fund expenses as such. There's too much unnecessary discussion on fund expenses (especially for active managed). Would you prefer a fund giving 20% return with 2% expense or a fund giving 12% return with .5% expense. The fund expense doesn't affect you, its the return which does.
I am sure it also works the same way in US.

[RAJESH H DHRUVA]

Dear Nehad

1. In India the Net Asset Value is declared by Asset Management Companies after deducting Fund House expenses.

Best wishes
RAJESH H DHRUVA
femaonline.com