Lower Mutual Fund costs

Wednesday, September 19th, 2018

In its board meeting on Monday cleared a number of proposals with regards to mutual funds that bode well for the long term health of the sector. Firstly, SEBI has created new caps on the total expense ratio (TER) for most funds. However, it allowed an extra 30 basis points for selling in B-30 (beyond […]

Risky credit funds

Tuesday, September 18th, 2018

Last week there was a downgrade of the debt rating of IL&FS and its subsidiaries by several notches. This is having a ripple impact on the mutual fund industry. As per a report by Bloomberg Quint: IL&FS has Rs 2,500 crore worth of rated commercial paper, of which Rs 2,020 crore was outstanding as of […]

Zero Cost Funds

Thursday, August 9th, 2018

This is an interesting development: Fidelity has launched two zero cost mutual funds. The global trend is toward lower expense ratios and fee structures as investors shift more aggressively toward passive management. The idea behind these zero cost funds is that Fidelity can probably use these funds as loss leaders to get more clients and […]