How can mutual fund apps like Groww, MyWay, Jama, etc, provide direct funds? Are they not brokers? How do these apps earn there livelihood without commission? What’s the inside story of such apps? How safe is it to use app’s like these in question?

Jama is not a broker. It does not make any revenue from producers. The clients pay a fee to keep us going. Safety: It is absolutely… Read More »How can mutual fund apps like Groww, MyWay, Jama, etc, provide direct funds? Are they not brokers? How do these apps earn there livelihood without commission? What’s the inside story of such apps? How safe is it to use app’s like these in question?

What would be the difference in returns if I opted for a mutual fund without close end against the same policy with 3 years lock in period (elss)?

Ideally the difference should be nil; however this depends on the extent of commissions that are front loaded into the respective schemes. Close ended funds… Read More »What would be the difference in returns if I opted for a mutual fund without close end against the same policy with 3 years lock in period (elss)?

How do I explain the deductions happening because of expense ratio each year when investing for the long term in index fund or top rated mutual of that category?

The expense ratio goes to paying the fund manager costs, marketing, overheads and the distributor if there is one. If you keep it low, your… Read More »How do I explain the deductions happening because of expense ratio each year when investing for the long term in index fund or top rated mutual of that category?

Can my portfolio consist of 100% small cap mutual funds if I want to invest for a minimum of 25 years? Is there any chance of getting lesser returns than if I had included large cap funds in my portfolio even after a minimum of 25 years period?

Yes one would like to earn maximum possible returns. However investing in only one type of fund class may not get you there. If you… Read More »Can my portfolio consist of 100% small cap mutual funds if I want to invest for a minimum of 25 years? Is there any chance of getting lesser returns than if I had included large cap funds in my portfolio even after a minimum of 25 years period?