Dr M Khalid's global village blog

Funds can also charge for the service tax on their management fee. Hence, an equity fund with a corpus up to  ₹ 100 crore may end up charging upto 3.3 per cent if you add different charges !! What is it? Mutual funds are professionally managed investment vehicles which help investors to grow their money by investing in financial assets such as equities, bonds, gold and other assets. Mutual fund companies charge a cost to their investors for managing their schemes. This cost is called the Total Expense Ratio. What is it? Mutual funds are professionally managed investment vehicles which help investors to grow their money by investing in financial assets such as equities, bonds, gold and other assets. Mutual fund companies charge a cost to their investors for managing their schemes. This cost is called the Total Expense Ratio. Why is it important? While mutual funds in the developed world charge a variety of fees and costs to investors, in India, almost all the costs are packed into t...

Going forward, mergers will become difficult for the funds. Also performance will be more easy to understand. Equity Sectoral funds (specific to a sector) are not expected to be much affected by mergers as was earlier. All this is good for the investor. Chart in this blog post is taken from: https://www.valueresearchonline.com/story/h2_storyview.asp?str=34875#prettyPhoto From Livemint: This article has a good chart too. Go to the link after this section. If your scheme undergoes a big change, evaluate. For instance, SBI Treasury Advantage Fund, which will be known as SBI Banking and PSU Fund, was meant for short-term investments. Now, its strategy would be to invest in debt scrips of state-owned companies and banks. "If the risk profile of a scheme changes, look at it again. If it no longer meets your purpose, leave it," said Vidya Bala, head-mutual fund research, Fundsindia.com. Don't blindly go by the change in your fund category. Mirae Asset Emerg...