One of the features to keep in mind before choosing one investment over another is cost. Cost is nothing but the fee you pay to invest. Fees can be varied, which means that different types of products will have different types of fees. Comparing fee at face value may not be accurate. Here are three things you need to keep in mind when calculating the fee you pay for a product.
Is it recurring?
While simple products like bank fixed deposits don’t have any fees, there are one-time account opening fees and recurring management fees attached to other products; some may have a combination of both. For example, managed funds come with recurring management fees, but if you consider investing in direct equity, there is a one-time account opening fee for most trading accounts, the demat fee involves annual maintenance charges and transaction-based brokerage.