#EXPENSE RATIO CALCULATOR SERIES#

The former part about marketing and pamphlet distribution also comes under the 12B-1 fee.īroadly speaking, the costs mentioned above comprise the mutual fund expense ratio. Hence, investment in direct funds via ET Money will prove to be cheaper than regular funds. This fee is also known as the brokerage fee. The cost component for intermediaries is lesser for direct funds and higher for regular funds because when you invest in a regular fund, there are costs for brokers like the distributors.

Marketing/Distribution fee – The costs pertaining to the mutual fund's marketing, creating awareness, and then getting it distributed through mutual fund distributors are a part of the expense ratio. Any cost pertaining to audits, registration, and transfers, legal checks, etc., are also a part of the expense ratio. Legal/Audit fee - Mutual funds are governed by the Securities and Exchange Board of India, and hence, complying with all the regulations and laws, they need constant legal intervention and audits of their processes, schemes, etc. For passively managed funds, this component of the mutual fund expense ratio is far lower than actively managed, because the fund manager need not actively manage the fund’s portfolio in the former. Such actively managed mutual funds’ expense ratio includes the compensation to the fund manager as a part of the expense ratio. (b) the requirement to provide note disclosure contained in subsection (2) does not apply if the investment fund indicates, as applicable, that fees have been waived, expenses have been absorbed, or that fees or expenses were paid directly by investors during the period for which the management expense ratio was calculated.There can be multiple types of expenses associated with a mutual fund expense ratio, like-įund Manager’s fee - Every mutual fund comes with an investment objective and it is the fund manager’s decisions that ensure that these objectives are met. (a) the investment fund must provide the management expense ratio calculated in accordance with this Part and (6) If an investment fund provides its management expense ratio to a service provider that will arrange for public dissemination of the management expense ratio, (5) The management expense ratio of an investment fund for a financial period of less than or greater than twelve months must be annualized.

#EXPENSE RATIO CALCULATOR SERIES#

(4) An investment fund that has separate classes or series of securities must calculate a management expense ratio for each class or series, in the manner required by this section, modified as appropriate. (3) Investment fund expenses rebated by a manager or an investment fund to a securityholder must not be deducted from total expenses of the investment fund in determining the management expense ratio of the investment fund. (d) any other arrangements concerning the waiver or absorption. (c) whether the waiver or absorption can be terminated at any time by the member of the organization of the investment fund and (b) the length of time that the waiver or absorption is expected to continue (a) what the management expense ratio would have been without any waivers or absorptions (2) If any fees and expenses otherwise payable by an investment fund in a financial year or interim period were waived or otherwise absorbed by a member of the organization of the investment fund, the investment fund must disclose, in a note to the disclosure of its management expense ratio, details of (b) multiplying the result obtained under paragraph (a) by 100.

(B) dividing the amount obtained under clause (A) by the number of days during the financial year or interim period on which the net asset value of the investment fund has been calculated and (A) adding together the net asset values of the investment fund as at the close of business of the investment fund on each day during the financial year or interim period on which the net asset value of the investment fund has been calculated, and (ii) the average net asset value of the investment fund for the financial year or interim period, obtained by (B) any other fee, charge or expense of the investment fund that has the effect of reducing the investment fund’s net asset value by (A) total expenses of the investment fund, excluding distributions if recognized as an expense, commissions and other portfolio transaction costs, before income taxes, for the financial year or interim period, as shown on its statement of comprehensive income and (1) An investment fund may disclose its management expense ratio only if the management expense ratio is calculated for the financial year or interim period of the investment fund and if it is calculated by

Expense ratio calculator