CHARGES IN MUTUAL FUNDS
FUND MANAGER MANAGES YOUR MONEY.
SUPPORTED BY A TEAM OF FINANCIAL ANALYSTS AND MARKET EXPERTS.
OBVIOUSLY, THEY DON’T DO THIS FOR FREE.
THE MUTUAL FUND COMPANY CHARGES FOR THEIR SERVICES.
1 EXPENSES RATIO
MUTUAL FUNDS MANAGE YOUR MONEY AND IN RETURN, THEY CHARGE FEES CALLED AN EXPENSES RATIO.
EXPENSE RATIO IS CHARGED ON ANNUAL BASIS.
2 STAMP DUTY
THE STAMP DUTY IS CHARGED AT THE RATIO OF 0.005% ON THE INVESTMENT VALUE.
STAMP DUTY CAME INTO ACTION RECENTLY, FROM 1STJULY, 2020.
3 SERVICE FEES
THERE ARE MANY ONLINE PLATFORMS TO INVEST IN MUTUAL FUNDS.
THERE COULD BE A TRANSACTION FEE OR SERVICE FEE THAT MAY OR MAY NOT BE APPLICABLE BY THE PLATFORM THAT YOU MAY BE USING.
4 EXIT LOAD
WHEN AN INVESTOR EXITS FROM A MUTUAL FUND SCHEME WITHIN A SHORT SPAN, AN EXIT LOAD HAS TO BE PAID.
THIS FEE IS CHARGED IN ORDER TO DISCOURAGE INVESTORS FROM OPTING OUT IF THE SCHEME TOO EARLY.
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