Calculating investment fees and compounding drag
Strategy 7 min read

Fees and Expense Ratios: The Silent Drag on Every SIP

A 1% fee feels tiny monthly and enormous over 30 years of automatic contributions.

SIPs amplify whatever you point them at—including costs. Prefer low expense ratios for core holdings and be skeptical of complexity that does not clearly pay for itself.

  • Compare TER/OER for funds you auto-buy.
  • Watch platform custody/trading fees on small frequent buys.
  • Avoid paying active fees for closet index performance.

Conclusion

Fee control is one of the few investing edges available to everyone. Your future SIP balance will notice even if today’s statement does not.

Related reading