It is generally believed that expense ratio difference between regular plans and direct plan of debt funds are small and, therefore, retail debt investors will not gain much by going direct. However, many debt funds also exhibit significant gap between expense ratio of regular and direct plan. Though the standard difference in case of debt funds is around 0.58%, in some cases, it can be as high as 1.2%. Around 47 debt funds currently carry an expense ratio of 75 bps or higher. 100 basis points is 1%.
India's wealthy opt for term insurance policies worth Rs 5-20 crore: Report
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