Ch.7 · NAV Calculation Rules · medium
What is the 'Ongoing Expenses' vs 'One-Time Costs' distinction in mutual fund investing?
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EXPLANATION
TER is an ongoing expense — deducted daily from the scheme's portfolio, effectively reducing NAV growth continuously throughout the holding period. Exit load and transaction charges are one-time costs triggered only by specific transactions. Understanding this distinction helps investors accurately calculate total cost of investing and compare investment options.
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