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Are there any charges levied on each SIP instalment that I pay per month

I understand that we all talk about SIP and its advantages. But my question I recently understood (sorry for being ignorant) that there are actually charges levied on each SIP instalment I pay per month. Though its not directly visible in the statement but I guess they collect this amount by NAV adjustments. Could you please help me understand how fund house charge me per month for a SIP amount of Rs. 3000. You can consider HDFC Midcap Opportunities fund?

Jun 13, 2016 by Sachin, Bangalore  |   Mutual Fund

Please note that no Asset Management Company in India levies any extra charges on SIP instalments, therefore, you should not worry about your SIP instalments and continue with your existing SIP investment.

Under the existing norms, the maximum expense that an AMC can charge for an equity scheme to an investor is 2.5% (2.25% for debt funds). The rate is applicable in following slabs -

On the first 100 Crores daily net assets 2.50%

On the next 300 Crores daily net assets 2.25%

On the next 300 Crores daily net assets 2.00%

On the balance of the net assets 1.75%

The above expenses are adjusted in NAVs. Please also note that there are no seperate or additional charges for either lumpsum or SIP investments. SIP is just a way of inevsting regularly on a pre-defined date and amount and comes with no extra charges. With regards to charges of the HDFC Mid Cap Opportubities Fund, please note that the scheme follows the same expense ratio as that of any other equity scheme. The current TER (Total expense ratio) of HDFC Mid Cap Opporunities Fund is 2.29% for the Regular plan and 1.44% for the Direct Plan. You may check the details here http://goo.gl/Y3ajeX

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