Now investors have one more reason to buy mutual funds as SEBI has capped expense ratio that an asset management company (AMC) can charge their investors.
SEBI, the market regulator has decided to make mutual fund investments favourable for investors by putting a limit on the expense ratio that an AMC can charge investors, thereby making it cheaper for investors to invest in mutual funds. So, how much will investors end up saving and does this mean higher returns for you?
How much will investors end up saving?
Firstly, it means you get higher returns in the future. So on a conservative basis an investor stands to gain as much as 15 lakh to 20 lakhs on an investment corpus of 1 Crore.
Secondly, it also means that difference between direct and regular plans will shrink and investors can opt for buying regular plans and get much needed financial investment advice offered by banks and other distributors.
Apart from this SEBI has given an additional bonanza by hiking interest rates by 40 bps in small saving schemes such PPF, Sukanya Samriddhi Yojana, National Service Certificate, Senior Citizen Scheme, etc. The yield in these instruments has gone up to 8% and much in line with market rates.
Go ahead & start investing in mutual funds today. Happy investing and definitely buy mutual funds with ezeehouse.com
To learn about SIP’s read our blog 7 reasons to start SIP online now