The Expense Ratio is of least importance in which of the following:
-
debt fund
-
index fund
-
equity fund
-
liquid fund
C
Correct answer
Explanation
Expense ratio impact is lowest in equity funds because returns vary widely based on stock selection and market movements. For debt and liquid funds where returns are tight and predictable, a 0.5% expense difference significantly affects net returns. Index funds are passively managed, so expense ratios directly determine if you beat or lag the benchmark.