Question

Drag the tiles to the correct boxes to complete the pairs.

Answer 1

Answer:

The mutual fund charge investors can charge you certain fee which is equivalent to the investment assets percentage. Also, an unofficial benchmark has been fixed to 1 %, though the advisers can take from you a little less or a little more. Hence, if you are investing $200,000. you need to invest $2000 each year as fee. However, the commission varies with product types as well

Explanation:

The mutual fund charge investors can charge you certain fee which is equivalent to the investment assets percentage. Also, an unofficial benchmark has been fixed to 1 %, though the advisers can take from you a little less or a little more. Hence, if you are investing $200,000. you need to invest $2000 each year as fee.

However, the commission varies with product types as well. The ELSS fund requires 4.5%  to 1%, the equity funds requires 0.5 to 2.5% and debt funds require 0.2% to 0.8%.