expense ratio difference for regular and Direct MF

POSTED BY ainvest ON August 6, 2013 11:21 pm ONE COMMENT

I noticed that mutual fund companies have increased the expense ration for their non-direct MF’s

checked on valuereserachonline site and what i found is

for HDFC Top 200 MF expense ratio is now 2.22 (EARLIER IT WAS BELOW 2…SOMETHING LIKE 1.68 OR SO)

for HDFC Top 200 Direct MF expense ratio is 1.65

This is totally unfair.

While “Direct” MF plan are suppose to benifit but then they are doing it at the cost of non-direct plans…

direct plans are supposed to be more benificial because commision(trailing) has been removed. But then what is the point in increasing cost for non-direct plan

One reply on this article “expense ratio difference for regular and Direct MF”

  1. This increase is most likely the non-trail commission part since the direct fund expense ratio has also increased a bit. See link below

    Nothing is being done for regular plans only. Of course if the AMC chooses to increase trail commission then there is nothing you can do. Why compare with direct plans? Compare with an equally performing regular fund with lower expense ratio.

    Such differences are here to stay. Investors will have to get used to these.

    http://freefincal.com/2013/08/05/mutual-fund-returns-comparison-direct-plan-vs-regular-plan/

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