(iii) Mutual Fund charges a fee for maintenance of these schemes to meet its various expenditures such as Salaries, Research, Maintenance of records etc. Is there any difference in the expenses charged by Mutual Fund on

CS Professional · Capital Commodity and Money Market · PYQS · December 2021
(iii) Mutual Fund charges a fee for maintenance of these schemes to meet its various expenditures such as Salaries, Research, Maintenance of records etc. Is there any difference in the expenses charged by Mutual Fund on maintenance of both these Schemes ?

Answer & Explanation:

Yes there is difference in the amount charged by the mutual fund for different categories. In ETF charges are done because mutual fund has just to rebalance the portfolio to provide true reflection of the index. In other schemes research and investment decisions are involved resulting into higher cost.

Topics: Investment Products

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