The answer in plain English
The input basis matters more than a precise-looking output. A projected gross portfolio return, a net NAV return and an investor’s after-tax proceeds are three different layers. Keep each labelled. A current expense ratio also cannot reconstruct every historical cost for a changing investment balance.
What to check
- Identify whether the return input is before or after scheme expenses.
- Use the exact plan’s dated expense disclosure.
- Apply any exit load only under the terms relevant to the units redeemed.
- Treat tax on eligible gains separately from operating expenses and total redemption value.
A useful comparison
| Cost layer | Where it enters | Avoid |
|---|---|---|
| Scheme expenses | Reflected through NAV accounting | Subtracting again from an already net NAV return |
| Exit load | Applicable redemption conditions | Assuming one standard rate for every holding |
| Broker/account cost | Relevant service or exchange transaction | Treating an ETF fee as its full cost |
| Tax | Investor and transaction-specific computation | Charging capital-gains tax on the whole withdrawal |
Make the distinction clear
Illustration: if NAV rises from ₹100 to ₹108 without distributions, its simple return is 8%. Calling it 7% solely by subtracting a quoted 1% expense ratio again is not correct. Conversely, a model beginning with a hypothetical 10% before-cost assumption must explain its expense treatment. The linked calculator offers scenario settings; it is not a substitute for your actual transaction statement or tax computation.
One final question before acting
Does the figure or document match the exact scheme, plan, option, period and purpose in your question? Keep the source date with the answer. For a real transaction or personal decision, the current scheme documents and your own records take priority over a saved educational example.