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Understanding Factsheets

A B C E F N P R S T V
Description
Expense ratio

Managing and operating a fund calls for lot of expenses which is charged to the investors. Expense ratio of a direct plan is lower than that of a regular plan as the former excludes distribution and trailing fees. Actively managed funds have higher expense ratio than passively managed ones. Expense ratio should be considered while choosing the fund but should not be the only criteria.

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