ETF vs Index Fund vs Mutual Fund Cost Calculator
Same market, four ways to own it. See how expense ratios, brokerage and bid-ask spreads change what you end up with after 5, 10 or 30 years.
Your investment
The same return is applied to all four options.
Expense ratios (% a year)
Defaults are illustrative. Replace them with the expense ratios from your funds' factsheets.
ETF trading costs and active-fund performance
Many brokers charge ₹0 on delivery trades; some charge ₹20.
Half is paid when you buy, half when you sell. Wider for thinly traded ETFs.
Charged by your depository participant when units leave your demat.
Before fees. 0 means it matches the index; test your own view.
Index ETF
Index Fund (Direct)
Active Fund (Direct)
Active Fund (Regular)
Value over time
Result
Side-by-side
| Index ETF | Index Fund (Direct) | Active (Direct) | Active (Regular) |
|---|
Illustration only. Assumes a constant yearly market return and expense ratio. "Lost to costs" compares each option with owning the market at zero cost. Values are before tax: equity ETFs and equity mutual funds held for more than 12 months are taxed the same way (12.5% on long-term gains above ₹1.25 lakh a year), so tax does not change the ranking. Stamp duty and ETF tracking difference are not included.
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ETF vs Index Fund vs Mutual Fund: What Actually Differs
An index ETF and an index fund can track exactly the same index, such as the Nifty 50. The ETF trades on the stock exchange like a share and needs a demat account; the index fund is a mutual fund you buy from the AMC at the day's NAV. An active mutual fund tries to beat the index by picking stocks, and charges more for it.
Because they can all hold similar stocks, the big long-run differences are costs: the yearly expense ratio, plus trading costs for ETFs. Small percentages compound. This calculator shows the rupee difference for your own amount, horizon and fees.
For a fuller comparison, with when each option makes sense, read ETF vs Mutual Fund vs Index Fund.
Worked example: ₹10,000 a month for 15 years
Illustrative: a ₹10,000 monthly SIP for 15 years at a 12% market return, with the default expense ratios (ETF 0.05%, index fund 0.2%, active direct 0.75%, active regular 1.5%), ₹0 brokerage, a 0.05% spread and a ₹15 demat charge. You invest ₹18 lakh in each.
| Option | Final value | Lost to costs |
|---|---|---|
| Index ETF | ₹47.34 L | ₹25,100 |
| Index Fund (Direct) | ₹46.69 L | ₹90,170 |
| Active Fund (Direct) | ₹44.31 L | ₹3.29 L |
| Active Fund (Regular) | ₹41.26 L | ₹6.33 L |
The regular plan ends ₹6.08 lakh below the ETF on the same market return. The ETF and the index fund are only about ₹65,000 apart, so convenience can reasonably decide between those two. The bigger choice is direct versus regular, and whether an active fund will beat the index by enough to cover its fee. Set the outperformance field to test that.
How to Use This Calculator
- 1
Choose SIP or lump sum
A monthly SIP into an ETF pays brokerage and spread on every purchase, so small SIPs can make ETFs costlier than they look.
- 2
Enter the amount, years and expected market return
The same return is applied to every option, so the gap you see is purely costs, plus any outperformance you give the active fund.
- 3
Put in real expense ratios
Each fund's factsheet lists its total expense ratio. Direct plans are always cheaper than Regular plans of the same fund.
- 4
Check ETF trading costs
Open the advanced panel to set your broker's charge per order, the ETF's bid-ask spread and the demat charge when you sell.
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