All mutual funds (MF) charge investors ‘expenses’. Capped by capital markets regulator Securities and Exchange Board of India (Sebi), equity funds can charge up to 2.5% of their weekly average net assets and debt funds up to 2.25%.
Yet there are funds that charge investors nothing, or next to nothing. For instance, the direct plans of some liquid funds and fixed maturity plans (FMPs). A cursory glance at the expense ratios of schemes across categories tells us that some liquid funds and FMPs have been charging between one and four basis points as expense ratio.
