🟢 At a Glance:
If you’re investing in SIPs through regular mutual fund plans, you might just be donating your returns to someone’s EMI. Expense ratios are the best-kept open secret of Indian finance — silently shaving lakhs from your final wealth. And the worst part? Nobody tells you how much you’re actually losing. Let’s expose the game.
đźš— Regular SIPs: A Middle-Class Scam in Installments
Here’s the classic formula:
- You start a â‚ą5,000/month SIP
- Stick to it for 25 years (good boy)
- You assume you’ll retire rich, becausecompound interest 🤌
Now let’s check reality:
| SIP Duration | Total Invested | Final Corpus (12% CAGR, Regular Plan) | Final Corpus (Direct Plan) | You Lost |
|---|---|---|---|---|
| 25 years | â‚ą15 lakh | â‚ą75 lakh | â‚ą84 lakh | â‚ą9 lakh |
💀 That’s ₹9 lakh gone. Not to inflation.To afund manager who bought HDFC, Infosys, and sipped green tea all day.
🧾 Expense Ratio:
What You’re Actually Paying
Let’s break this daylight robbery down:
| Fund Name | Regular Plan TER | Direct Plan TER | Hidden Cut |
|---|---|---|---|
| ABSL Frontline Equity | 1.91% | 0.68% | â‚ą13,000+/year on â‚ą10L |
| ICICI Bluechip | 1.88% | 0.73% | You fund their travel |
| Axis Growth Opp | 2.24% | 0.89% | That’s half your return |
And TER is chargeddailyfrom your NAV.It’s not even listed as a line item. It justevaporates.
🧠“Regular Plan” = Passive Wealth Transfer to AMC
Here’s what actually happens when you start a SIP via a bank or agent:
- They recommend Regular Plans — becausethey get trail commission
- You start with hope, â‚ą5,000/month
- They take a 1–1.5% cut for 25 years
- You retire with â‚ą9 lakh less
- They retire with… your ₹9 lakh
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