Friday, September 21, 2018

Fees on Fund Mutual investment cut down . SEBIs decision - Investors benefit

Security and Exchange Board of India has taken decision to cut down the annual fees  laid by mutual fund companies by about 1% thus benefiting investors.Though the decision will affect revenue of mutual fund companies, it will be cheaper for investors to invest in mutual funds. Fees deduction will obviously boost investments in mutual funds.

Mutual fund companies laid a maximum 2.25 to 2% fees (Expense Ratio) to investors for managing there money. On Tuesday 18th September 2018. SEBI has approved the proposal of cut in these fees. Accordingly about 1.25% to 1% fees will be applicable henceforth. Consequently the commission of mutual fund distributor will be reduced by 0.15 to 0.2 percent. Normally total commission of mutual fund distributors ranges from 0.2 % to 1% depending on type of Mutual fund.
In 1999 mutual fund investments were 79.5 thousand crores. Today mutual fund investments has grown above 25 lakh crores.

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