Kunal Bajaj, Founder & CEO, Clearfunds said, “The revenue model for zero expense mutual funds is to earn stock lending fees on the underlying holdings. The stock loan market is practically non-existent in India, so zero-fee mutual funds are a non-starter.” For parameters, an investor should evaluate while investing in mutual funds Bajaj recommended: “The right way to invest in a mutual fund is first to pick the right fund, and then select the lower-fee direct investment option not the other way around.”
