POSTED BY April 5, 2013 4:57 pm COMMENTS (4)
ONHi,
I invest directly through AMCs. But I live in Madurai (also the AMC offices that i deal with are here). Does it mean that i will have to shell out more as expense ratio, since I am not from the top 15 cities from where the AMCs receive their AUM?
Thanks,
Ram
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Ram, you will not be ‘penalized’ because you stay in Madurai. All the holders of the fund (no matter where they stay) will have to pay the extra marginal fee if the fund meets the criteria.
Also this has nothing to do with direct plans. All will pay little extra fee if the criteria is met (no matter whether they go with direct or non direct option)
Dear Ram, yes is the answer. To save on cost, please invest directly. In your case, the potential saving in expense ratio can be as high as 0.8 to 0.9%. (0.6% regular expense ratio saving + 0.2 to 0.3% small city expense ratio saving)
Thanks
Ashal
Dear Ram, if you are investing directly with the AMC, you can save on expenses ratio.
thanks
Ashal
Thanks Ashal,
does it mean that
1. ONLY if i go through a distributor, i could be charged extra 20-30 bps (as a burden of not living in the top 15 cities 😉 )
2. I will be charged the MINIMUM (which might vary fund to fund basis) expense ratio since i invest through direct investments.
Ram