Mutual fund expenses…and sabotage
Almost all experts will tell you that Investor Returns = Market Returns MINUS expenses
Since you cannot predict market returns and the fund manager performance, you need to concentrate on expenses. Right?
Sure, but how did you ask?
Most websites are happy taking the expenses as provided by the fund house.
Now wait a minute is it different from what they really charge?
Hmmm well, its different. So the expenses on their website is different?
Many a times yes. So I just go their website and take it, right?
Well my friends at www.mfcritic.com did that. Or tried doing that…and here is what they have to say about the experience
http://mfcritic.blogspot.in/2018/04/fund-houses-sabotage-sebi-expense-ratio-reforms.html
Prasanna
Unlike many other fund houses I find Quantum AMC the most investor friendly. Just click on any MF scheme and the expense ratio is mentioned right there in the snapshot. No intention of hiding it.
Pradeep
Subra,
Let me also add one more point on this.
I have been receiving a mail every day from Birla Sunlife MF informing me that the base expense ratio changed from 1.15% to 1.14% and vice-versa on one of their funds that I invested in.
So it goes like
3-Apr 1.15% to 1.14%
4-Apr 1.14% to 1.15%
5-Apr 1.15% to 1.14%
They are changing it everyday and sending a mail for it. What are they trying to achieve here by adding 0.01% one day and reducing 0.01% next day and so on?
It is done to just annoy the investors.