Hidden Fees Behind So-Called 'Zero AMC' Mutual Funds: What Indian Retail Investors Need to Know

Zero AMC sounds free, but critics say the math isn’t adding up. Mstock is accused of using a 'zero AMC' label to lure investors while tucking in other charges that spike the bill ^[1].

What 'Zero AMC' Really Costs On top of the label, Mstock’s operating charges run at 219 + GST per quarter, totaling about 1,033 per year, the post claims ^[1]. That figure challenges the idea of zero costs and fuels a bigger debate about the transparency of mutual-fund charges. The post also rings the alarm on SEBI’s BSDA criteria, arguing the framework would imply zero AMC for some accounts and tiny amounts for others ^[1]. It sketches the allegedly standard guideline: below 4 Lakh, AMC should be 0; above 4 Lakh, about 100; only above 10 Lakh should AMC apply ^[1].

Backed by Mirae Asset, But Not Free The critique notes Mirae Asset backs Mstock, yet the charges are described as higher than many bank brokers ^[1]. Brand backing doesn’t automatically mean zero costs.

Want Clearer Fees? Consider Alternatives As the contrast, Flattrade is pitched with zero brokerage and no AMC, per the discussion ^[1]. That kind of model highlights the difference between what’s advertised and what investors actually pay.

Bottom line: a 'zero' label isn’t a guarantee of zero costs. Read the full fee sheet and push for transparent, straightforward fee structures that match the service you actually receive ^[1].

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