Expense Ratio

Although lower expense ratios help a scheme’s return, that should not be the only criteria for selecting a scheme. Its pedigree, long-term track record, and discipline are more important to ensure consistency and continuity of the investment philosophy.

Is your mutual fund justified for the expenses it charges you?

A recent SEBI consultation paper quotes an internal study it conducted, which showed a wide range of underperformance by mutual fund schemes versus their benchmarks. That’s what led SEBI to propose performance-linked fee. A Moneycontrol analysis made a similar finding. Just 47 percent of the schemes (regular plans) have outperformed their benchmark indices over the past 10 years

Will performance-linked fees help mutual fund investors?

SEBI is contemplating such a move given that higher-cost active schemes have underperformed, while lower-cost passive schemes have outperformed. But the jury is out on whether this will help.

Performance based fee is the least SEBI can do to ensure better returns by mutual funds

Most actively managed funds do not beat the benchmark indices

SEBI pauses B-30 commissions till mutual funds revamp systems

SEBI had permitted fund houses an additional expense ratio of 30 bps on new inflows (up to Rs 2 lakh) from retail investors for incentivising mutual funds garnering funds from B-30 cities.

Explained: How direct plans carved a niche in the Indian mutual fund industry

Introduced in January 2013, direct plans have become the preferred way for large and institutional investors to invest in mutual funds. Over time, SEBI-registered investment advisors have given them a further boost

Why costs matter more in mutual fund direct plans

A number of asset managers are now putting more resources behind servicing and sourcing of direct investors

5 points to know about expense ratios of mutual fund schemes

Other factors remaining the same, a higher expense ratio means lower returns for investors

Are equity savings funds worth your time? A look at their expense ratios

Touted as a tax-friendly option to a mutual fund monthly income scheme, equity savings funds have given volatile returns. And high expense ratios haven't helped either

Opinion | Why SEBI should stop worrying about high MF expense ratios

Market forces should decide how high can fees and commissions be charged and whether the consumer gets benefits for what she pays

MFs cut trail commissions after SEBI reduces total expense ratio for investors

As many as eight fund houses have reduced trail commissions and others are in the process of doing so

Staying with direct plans is the best route

One of the things that has been witnessed in recent times has been that investors do not make the best use of direct plans.

How to choose a banking fund for your portfolio?

Here is a look at banking funds that are present and some ways in which they might be different from what one expected them to be.

Here's why you should care about your mutual fund fees

Mutual funds are a solid investment vehicle but like all good things in life, they come at a cost.

Invisible expenses can pull down your mutual fund returns

While some expenses such as exit loads are known, there are some such as expense ratio and dividend distribution tax may be hidden.

Should you invest in a debt mutual fund?

While most conservative investors would like to commit their money to fixed deposits, debt mutual funds can be a very good investment option

Why MF direct plans make a good investment choice

Direct plans offer lower expense ratio. In the long term, the lower expense ratio should translate into larger saving pool for investors in direct plans as compared to those in regular plans.

Should I invest in direct plans of mutual funds?

Direct plans offer low expense ratio and boost investment returns in the long term. But they are meant for investors who are willing to take some extra effort.

Should you exit MF scheme if its fund manager changes?

In an interview to CNBC-TV18 Gaurav Mashruwala, certified financial planner, shared his reading and outlook on mutual funds and advised on when it would be right for an investor to move out of the fund.

Sebi sops for MFs, but want more disclosures

Regulator Securities and Exchange Board of India took decisions aimed at incentivising the mutual fund industry, which has been at the receiving end of the slowdown.

Should investors always choose MF over direct equity?

Retail investors are always advisable to invest in Mutual Funds over Direct Equity. But are mutual Funds really that safe to invest? Financial Planner Vivek Sharma does a comparison of investing in Mutual Funds over Direct Equities.

MF industry wants service tax to be borne by consumers

The mutual fund industry wants the consumers to bear the burden of 12 percent service tax on purchase of schemes and has also pitched for higher administrative expenses during their meeting with the Finance Ministry officials.

Are you selecting your mutual fund advisor wisely?

We don't realise that how our laid back attitude towards investments can cost us a few extra returns. If we recognise the facets to be looked into while selecting a prudent advisor; you�ll understand that selecting a good MF advisor is quite similar to selecting a good wife in many ways - who can stand by you through health and sickness.