Navi Mutual Fund (MF), which is backed by Flipkart co-founder Sachin Bansal, will soon be launching the cheapest index fund -- Navi Nifty50 Index Fund.
The fund will have a total expense ratio (TER) of 0.06 percent in its direct plan. TER stands for the costs charged to investors in asset management fees and other expenses borne by the fund house.
With all other things being the same, a fund with higher TER can lead to slightly lower returns, compared to a fund with lower TER.
According to data from ACE MF, ICICI Prudential Nifty Index Fund and ICICI Prudential Sensex Index Fund are the two cheapest funds in the industry at present, with TER of 0.10 percent.