What you should know when considering mutual funds. What are the limitations 

3 Limitations of Mutual Funds – Video Transcript

Fees: 

  • Mutual funds have a flat nonperformance linked fee structure
  • You pay for regardless of fund performance

Investment Decisions:

  • Investment is managed by the fund manager.
  • Individual investor cannot influence what investments the MF makes

Costs:

  • Costs incurred for managing the scheme are shared by all investors.
  • Therefore an individual investor has no control over the costs.

 


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