1 min read.Updated: 16 Aug 2020, 10:01 AM ISTAvneet Kaur
SBI Small Cap Fund, Axis Bluechip, Axis Focused 25, ICICI Pru Value Discovery schemes will become costlier for investors after the implementation of revised expense ratio.
SBI Small Cap Fund, Axis Bluechip Fund, Axis Focused 25 Fund, ICICI Pru Value Discovery schemes have seen an increase in the base expense ratio under their direct plans recently. These schemes will become costlier for investors after the implementation of revised expense ratio. A higher total expense ratio (TER) will lower the net asset value (NAV) of the scheme. NAV of a mutual fund scheme is calculated after deduction of total expenses.
SBI Small Cap Fund saw an increase in base TER by 10 bps to 0.82. 1 bps is 0.01%. The revised expense ratio applied from July 30. SBI Small Cap Fund was launched in January 2013 and manages assets worth ₹4,270 crore. SBI Mutual Fund is the largest AMC managing an AUM of ₹3.64 lakh crore. Base TER of SBI Bluechip Fund was also hiked from 0.84% to 0.88%.
Axis Bluechip Fund and Axis Focused 25 Fund are among the popular equity schemes of the seventh largest mutual fund house of the country. Direct plan of Axis Bluechip Fund, the large cap scheme of the AMC saw an increase of 8 bps in its base TER to 0.41%. Axis Focused 25 Fund saw a rise from 0.51% to 0.54% in its base TER under direct plan. The revised rates got implemented in the last week of July.
Axis Bluechip Fund and Axis Focused 25 Fund manage assets worth ₹15,945 crore and ₹11,043 crore respectively. These schemes are popular with investors for their great performance especially in the around last two years.
ICICI Prudential Value Discovery Fund, the largest scheme in the value-oriented category of equity mutual funds saw in increase from 1.03% to 1.05% in its base TER. The scheme manages an AUM of ₹15,880 crore. The revised TER will be effective from August 20.
ICICI Prudential Mutual Fund is the third largest AMC in the country holding assets worth ₹3.26 lakh crore