For Quick Alerts
For Daily Alerts

    Cost Of Regular Mutual Funds Declines Sharply


    As the revised slabs in respect of mutual funds come into effect with the onset of new financial year 2019-20, you will see the cost of regular funds fall sharply. But herein it is to be noted that in case of direct equity plans, the cost or total expense ratio cut has only been of a modest order.

    Cost Of Regular Mutual Funds Declines Sharply

    The cut in TER in case of regular funds has been in absolute terms and for the direct plans it is higher in comparison in percentage terms.

    Direct plans are different from regular plans as they do not involve middlemen i.e. salesmen who charges an upfront commission and so direct plans are rather cheaper.

    As per the data it has been seen that TER for regular plans of the leading 10 largest equity funds declined by 21 basis points on an average. For the direct plans, TER fell by 14 basis points.

    Further the SEBI's rule state that the two type of mutual fund should have a difference in TER which should be reflective of commission charged under a regular plan. And the decrease in TER between the direct and regular plan indicates that across most of the schemes, distributor commission has got down, except for a few schemes.

    Story first published: Wednesday, April 17, 2019, 15:14 [IST]
    Company Search
    Enter the first few characters of the company's name or the NSE symbol or BSE code and click 'Go'

    Find IFSC

    Get Latest News alerts from Goodreturns

    Notification Settings X
    Time Settings
    Clear Notification X
    Do you want to clear all the notifications from your inbox?
    Settings X
    We use cookies to ensure that we give you the best experience on our website. This includes cookies from third party social media websites and ad networks. Such third party cookies may track your use on Goodreturns sites for better rendering. Our partners use cookies to ensure we show you advertising that is relevant to you. If you continue without changing your settings, we'll assume that you are happy to receive all cookies on Goodreturns website. However, you can change your cookie settings at any time. Learn more