AMCs  are  permitted to charge  expenses  upto a  maximum of  2.25% in case of Equity funds and 2% in case of Debt funds. But some AMCs were charging higher expenses.SEBI had instructed the AMCs to reduce the expenses ratio effective from 1st April 2019 and the AMCs have reduced the expenses .The expenses of some of the  schemes in   case  of both   Regular plans  and Direct Plans effective 5th April 2019 are as follows.AS may be observed the difference between regular and Direct Plans are commission paid to the Distributors (Banks and Individual agents)

Investors are becoming more aware of Mutual Fund Direct Plans. Investment into Mutual Funds (MFs) can be done in two ways:- Regular Plans whereby a certain ‘expense ratio’ is charged by the mutual fund company ( ie, the AMC – Asset Management Company), as a percentage of the value of your fund, which includes the fee of the AMC as also some fee of the Adviser who is managing your portfolio. Thus, it is a bundled option. The fee of the Advisor is directly credited by the AMC to the Advisor after it has been charged to you. So, the expenses charged […]