What is the expense ratio in mutual funds?
The Expense Ratio denotes the annual operating expenses of a mutual fund scheme as a percentage of its daily net assets. It covers the costs associated with the fund's management, administration, advertising, and other operational expenses. If a scheme has an expense ratio of 1%, it implies that 1% of the fund's total assets are used each year to cover its expenses. It is essential to note that a higher expense ratio can reduce the overall returns of an investor. The monthly factsheets published on the Asset Management Company’s (AMC) website provide the expense ratio for each scheme.
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What charges apply for investing in mutual funds through FYERS?
There are no charges for buying mutual funds on Fyers Direct — purchasing is completely free. However, when you redeem (sell) your mutual fund units, a standard DP charge of ₹12.5 + 18% GST per ISIN applies, as per the demat debit structure. This is ...
What are closed-ended funds/schemes in mutual funds?
Closed-Ended Funds or Schemes are specific types of mutual fund schemes that are available for subscription only during a designated timeframe, often referred to as the New Fund Offer (NFO) period. They come with a predetermined maturity date, ...
How do Dividend Plans in mutual funds function?
Dividend Plans in mutual funds periodically distribute the income or profits generated by the fund to its investors. Instead of reinvesting the earnings, these plans provide cash payouts to unit holders, allowing them to benefit from the scheme's ...
Are there inherent risks when investing in mutual funds?
Yes, like all investment vehicles, mutual funds carry risks. They invest in a variety of financial securities such as equities, bonds, and money market instruments. The performance of these securities can be volatile, leading to fluctuations in the ...
Can NRIs invest in mutual funds in India?
Non-Resident Indians (NRIs) are eligible to invest in mutual funds in India. The specific guidelines and requirements for NRIs to invest are detailed in the offer documents of the mutual fund schemes. To initiate opening an NRI account, register ...