POSTED BY October 28, 2010 10:28 am ONE COMMENT
ONHi ,
Heard that the present expense ratio of BSL Frontline Equity-Plan A has been hiked to 2.3% from 1.9% . Will this have any effect on the performance of the fund considering that even with an expense ratio of around 1.9% this fund has not outperformed its benchmark quite well?
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Sreeraj
definately , increasing expense ration means taking more money for their services , so if AUM (total money) in mutual funds was 100 crores, with 1.9% expenses , they take 1.9 crores per year .. no it will be 2.3 crores .. so ultimately there is 0.4 crore less in the Overall fund ..
So it will affect your returns .. 2.3% expenses is on higher side .. See if the overall performance justufy’s more expenses or not !
Manish