HDFC index funds expense ratio doubled in direct plans from 15-Apr-2021

[teofrastus]

@wilddaisy Why do you avoid 'anything HDFC'?

 

[treeofglory1]

@wilddaisy Maybe read up about Morgan Stanley and their heroics in India

 

[denisovic]

@wilddaisy Hopefully UTI will maintain the lower fees to increase their subscriber base

 

[wilddaisy]

@denisovic They've already announced an increase
Someone else posted this here

 

[heliumskylark]

@james76 There is no fund manager expense in these funds and still they hike the expense ratio. This is why we need stronger regulations.

 

[kj_oregon]

@heliumskylark Index funds have fund managers who are experts in reducing tracking error. Everyday stocks weightage changes in 4-5 decimal points. One has to take a call to readjust or wait for 1-2 more days. Also, they need to balance redemption etc., Most of this is automated but still need someone to check . No point in doing so many buy/sell transactions whenever a slight 0.0001 % variation happens in weights - That would result in unnecessary Demat charges, transaction charges thereby increasing the tracking error.

 

[whittney1234]

@heliumskylark It is apparently managed by an Arun Agrawal and Krishan Kumar Daga. I've noticed other houses' index funds too have managers. Why so?

 

[resjudicata]

@whittney1234 Why the downvotes?

 

[kira_b24]

@resjudicata Because index funds don't require dd and research to pick stocks. You just have to copy the index. Fund manager's role is just a placeholder.

 

[confusedfellow]

@james76 Started with them but then moved to Icici Nifty Index. Wonder if it's to be expected across index funds now. They're realising Index funds are getting recognition and want to milk it as well

 

[legroom]

@confusedfellow This could make sense as Index funds have definitely started gaining traction. How's ICICI though? I had thought of investing with them but then settled with UTI.

 

[confusedfellow]

@legroom They've had some tracking error in the last year in comparison to UTI. I would suggest sticking to the UTI one. Though they've also increased TER to 0.18% today, I expect ICICI to do the same as well in the near future.

 

[davestarr99]

@confusedfellow Which one to choose between UTI Nifty Index and HDFC Sensex Index Plan?

 

[ahealingpen]

@james76 Just saw the email. Put a sizeable amount with this fund this month only. FML. Greedy fuckers!

 

[wilddaisy]

@ahealingpen You can easily move to uti or some etf. You may not even get taxed. I don't think the index moved much.

 

[rolltider39]

@wilddaisy "You may not even get taxed"
Won't you have to pay capital gains tax when you shift money between funds?

 

[ahealingpen]

@wilddaisy Exit load will kick in. And what if uti also increases it?
Like someone rightly said in comment that we need tight regulation.

 

[wilddaisy]

@ahealingpen Index funds usually don't have exit load

 

[toe]

@ahealingpen it has only 3 days block on exit

 

[dave3b]

@wilddaisy Uti too jas increased ter