Owning an Index ETF or Index mutual fund, Which is costly?
When my invested money in the fund reaches Rs.50,00,000/- (Rupees Fifty Lakh only), at this point which of the following two schemes become more costlier than the other to maintain year after year.
SBI Nifty Index Fund (Mutual Fund)
and
SBI - ETF Nifty 50 (Exchange Traded Fund)
I am of an impression that a typical Demat & Trading account would only charge Rs.500/- approximately as annual maintenance charges. But with an Expense Ratio of 0.28%, the Mutual Fund house (in this case SBI MF) may charge 50,00,000 * 0.28% which is Rs.14000 per annum on SBI Nifty Index Fund (Mutual Fund).
I attached the Total Expense Ratio (TER) sheets of both the above two schemes and to my surprise I saw there is no TER mentioned for the "ETF" category.
(obtained from https://www.sbimf.com/en-us/disclosure/total-expense-ratio-of-mutual-fund-schemes)
In such case is buying and retaining ETF (SBI - ETF Nifty 50) cheaper in comparison to owning the mutual fund (SBI Nifty Index Fund)?
thanks in advance
RAM
When my invested money in the fund reaches Rs.50,00,000/- (Rupees Fifty Lakh only), at this point which of the following two schemes become more costlier than the other to maintain year after year.
SBI Nifty Index Fund (Mutual Fund)
and
SBI - ETF Nifty 50 (Exchange Traded Fund)
I am of an impression that a typical Demat & Trading account would only charge Rs.500/- approximately as annual maintenance charges. But with an Expense Ratio of 0.28%, the Mutual Fund house (in this case SBI MF) may charge 50,00,000 * 0.28% which is Rs.14000 per annum on SBI Nifty Index Fund (Mutual Fund).
I attached the Total Expense Ratio (TER) sheets of both the above two schemes and to my surprise I saw there is no TER mentioned for the "ETF" category.
(obtained from https://www.sbimf.com/en-us/disclosure/total-expense-ratio-of-mutual-fund-schemes)
In such case is buying and retaining ETF (SBI - ETF Nifty 50) cheaper in comparison to owning the mutual fund (SBI Nifty Index Fund)?
thanks in advance
RAM
Attachments
-
15.9 KB Views: 24
-
16.1 KB Views: 17