NSDL consolidated statement shows the charges, why does it not reflect in the regular statement?
- Kamal Khanna, Delhi
Transcript: It is a recent change. SEBI has made it a rule that the commission paid by the fund company to a distributor will be clearly mentioned in the account statement that the customer will get. This will be mentioned in the NSDL consolidated statement and your fund statement. The account statement will also mention the expense ratio of both the regular and the direct plans of the scheme that the investor has invested in. The regular plan of a scheme is the one sold by distributors, while the direct plan is sold directly by the fund company to the investor. The two have identical underlying investments, but since fund companies' expenses are lower in direct plan (they don't have to pay commissions). Debt funds pay monthly commission to the distributors, and equity funds pay it on a three monthly basis.