DSIJ Mindshare

Financial Freedom is less about financials and more about freedom. DSIJ explains how you can work towards financial freedom and live the lifestyle you desire without having to work for money.

The market regulator, Securities and Exchange Board of India (SEBI) in its latest meeting has decided to cap the expenses ratio charged by the fund houses to investors. This change in slab rate of expense ratio is being done after a gap of almost 22 years and this change is for the first time after the slab rates were introduced in the year 1996.

There are many concerns in the minds of investors when it comes to investing in mutual fund. With the indices trading at all-time highs, investors are wondering whether the markets would start falling sharply from these levels or there would be a minor correction in the market. Recently, we saw the equity markets falling from the recent highs by 3-5 per cent.

The Sensex and Nifty are up by more than 15 percent year till date, however, individual portfolios and smallcap and mid-cap dedicated funds are in red. DSIJ explains how you can imitate the returns of frontline indices.

There is a sense of deja-vu among many stakeholders of the domestic mutual fund industry after the market regulator, Securities and Exchange Board of India (SEBI), capped the expenses of mutual funds and linked them to the assets under management (AUMs). Almost nine years ago, when SEBI had banned the entry load, doomsayers had predicted the end of the mutual fund industry in India. Nine years down the line, mutual fund industry has emerged stronger than ever. The growth in mutual fund industry has been phenomenal. Since year 2009, the domestic AUMs have witnessed an annual growth of 17%. It has increased from around Rs5 lakh crore to Rs25 lakh crore.