Q1.
‘Expense ratio’ is nothing but a one-time cost per unit- incurred to operate a scheme – and is charged to its assets.
Q2.
Expense ratio is due to allocation of the following costs incurred by the mutual fund. (Mark the correct answer)
Q3.
Higher the expense ratio of a mutual fund, higher is the return, and vice versa.
Q4.
SEBI has put in place different caps on expense ratios for equity funds, debt funds and index equity funds.
Q5.
The NAV that is declared every day is net of expense ratio, which means the investor does not pay this separately to the AMC