A 2% fee doesn't sound like much.
On ₹15,00,000 it quietly takes ₹7.33 lakh out of your next ten years.
A percentage fee is charged on everything you have, every year — so it grows exactly as fast as you do, and it takes the compounding with it. A flat monthly subscription does not. The numbers below are already filled in with a realistic starting point; change any of them and the whole model follows.
Pre-filled with a realistic starting point — the results on the right are already computed. Change anything you like; nothing here is fixed.
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Portfolio value over time
Illustration only, not investment advice or a guarantee of returns. Both scenarios assume the same gross annual return, compounded yearly; the only difference modelled is the fee structure. Real mutual-fund expense ratios, exit loads and taxes vary. Past performance does not indicate future results.
How this is calculated
- Traditional mutual fund (Scenario A): the AUM fee is a percentage skimmed off the return every year, so the portfolio compounds at
return − AUM fee. Because it's a percentage of your whole corpus, the rupee cost grows as you do. - MindForge flat fee (Scenario B): the portfolio compounds at the full
return, then a fixed annual amount (monthly fee × 12) is deducted at the end of each year. The fee never scales with your corpus. - Monthly SIP (optional, both scenarios): this engine compounds once a year, so a monthly contribution is modelled as
SIP × 12added at the end of each year — an ordinary annuity, and the conservative reading. The identical amount is paid into both portfolios, and because the AUM fee is charged on each year's opening balance, a contribution made at year end is not charged a fee for that year either.
The headline figure is the difference between the two final corpuses. It is shown as a loss rather than a saving because that is the direction the money actually moves: a percentage fee is levied every year on everything you hold, whether or not you do anything. It splits into two parts —
- Extra fees handed over — total AUM fees minus total flat fees, in plain rupees.
- Growth those fees never earned — the remainder, derived by subtraction so the two halves always sum to the headline. Money taken out in year 2 cannot compound in years 3 to 10, and on a long horizon this is the larger half.
On smaller portfolios with a low AUM fee a flat fee can genuinely cost more, and the panel says so in those words rather than hiding the case. Nothing here is a forecast: the return you type is applied identically to both scenarios, so the only thing this page ever compares is fee structure.