Photo: Mint
Photo: Mint

Mutual fund costs matter

Equity funds are allowed to charge up to 2.5% of the assets that a scheme manages; debt funds’ expenses are capped at 2.25%

Every mutual fund house incurs expenses. Rules allow mutual fund schemes to deduct some portion from your investments to pay for these expenses. But there is a limit to which fund houses can charge investors. Equity funds are allowed to charge up to 2.5% of the assets that a scheme manages; debt funds’ expenses are capped at 2.25%. Ideally, the lower the expense, the better it is as expenses reduce fund returns. But a low expense ratio is just one of the many parameters that investors should look at. Check out these expense ratios, which are the lowest in the industry for this category, against your funds’ costs.


Close