Why I NEVER invest in NEW MUTUAL FUND OFFERS (NFOs)

Опубликовано: 19 Октябрь 2024
на канале: Rahul Jain

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As my own principle, I never invest in new mutual funds offers because when a new mutual fund is launched, the fund house wants to get customers at any cost. So they take shortcuts or sometimes even mislead you.

Point in case DSP Nifty 50 ETF that was launched in Dec 2021. Their actual expense ratio was coming to be 0.16% but they knew that existing mutual funds were offering as low as 0.07% expense ratio, what they did was, they declared their expense ratio to be .07% and remaining .09% they absorbed the cost on their own books.

This is very wrong because customers like you and me will initially pay .07% and after 2-3 years DSP can increase their expense ratio to .16%. That's why SEBI imposed a penalty of 1 lakh rupee to the fund house.

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