New Delhi, May 12 -- If you plan to invest in mutual funds, it becomes important to understand that there are certain costs associated with them. Mutual funds levy certain operating expenses to cover the costs of managing a scheme. Hence, as a mutual fund investor, it becomes essential to know such costs to make smarter investment decisions.

According to the Sebi (Mutual Funds) Regulations, 1996, Mutual Funds are allowed to charge certain operating expenses for managing a mutual fund scheme.

These expenses may include sales, marketing or advertising expenses, administrative expenses, transaction costs, investment management fees, registrar fees, custodian fees, and audit fees, which are a percentage of the fund's daily net assets. Such ...