74th Day Of Lockdown

Maharashtra80229286942849 Tamil Nadu2869415762235 Delhi2633410315708 Gujarat19119130111190 Rajasthan100847359218 Uttar Pradesh97335648257 Madhya Pradesh89965878384 West Bengal73032912366 Karnataka4835169357 Bihar4598223329 Andhra Pradesh4250256573 Haryana3597120924 Telangana32901627113 Jammu and Kashmir3142104835 Odisha247814819 Punjab2415204347 Assam19894434 Kerala170071215 Uttarakhand115328610 Jharkhand7642975 Chhatisgarh6781892 Tripura6221730 Himachal Pradesh3691636 Chandigarh3022225 Goa126570 Manipur124110 Puducherry90330 Nagaland8000 Arunachal Pradesh3710 Meghalaya33131 Mizoram1710 Sikkim200
Nation Current Affairs 26 Mar 2019 Mutual Funds’ ...

Mutual Funds’ upfront cut capped to first SIP of Rs 3,000

FC INVESTIGATIVE BUREAU
Published Mar 26, 2019, 2:33 am IST
Updated Mar 26, 2019, 2:33 am IST
The Sebi amended the conditions required for upfronting of trail commission based on SIP inflows at the mutual fund level.
The regulator had in October 2018 asked the AMCs to adopt full a trail model of commission in all schemes while allowing upfronting of trail commission only in case of inflows through systematic investment plans (SIPs).
 The regulator had in October 2018 asked the AMCs to adopt full a trail model of commission in all schemes while allowing upfronting of trail commission only in case of inflows through systematic investment plans (SIPs).

Mumbai: The markets regulator Sebi on Monday said that mutual fund could charge upfront trail commission for SIPs of only up to Rs 3,000 per month for a scheme from an investor.

The commission will be paid from the books of the asset management company (AMC) and only the first SIP purchased by the new investor will be eligible for upfronting, the Sebi circular said.

 

The regulator had in October 2018 asked the AMCs to adopt full a trail model of commission in all schemes while allowing upfronting of trail commission only in case of inflows through systematic investment plans (SIPs).

The Sebi amended the conditions required for upfronting of trail commission based on SIP inflows at the mutual fund level. “The upfronting of trail commission may be for SIP of up to Rs 3,000 per month, per scheme, for an investor who is investing for the first time in mutual fund schemes,” Sebi said in a circular.

It further said in case multiple SIP(s) are purchased on different dates, the SIP(s) for which the installment starts on the earliest date will be considered for upfronting.

The commission will account for computing the TER (total expense ratio) differential between regular and direct plans in each scheme, the Sebi said.

TER is a percentage of a scheme's corpus that a mutual fund house charges towards expenses, including administrative and management.

For the purpose of charging additional TER on inflows from retail investors, from beyond top 30 cities (B-30 cities), Sebi said that inflows of up to Rs 2 lakh per transaction by individual investors will be considered as inflows from the retail investor.

AMCs are required to disclose the TER of all mutual fund schemes except infrastructure debt fund schemes on their website on a daily basis.

Also, issuance of prior notice to the investors will not be required in case of any increase or decrease in TER due to change in asset under management (AUM) or other regulatory requirements.

Further, Sebi while making other modifications in disclosure norms, said that schemes in the category of overnight fund, liquid fund, ultra short duration fund, low duration fund and money market fund will be exempted from making performance disclosure provided that the schemes are in existence for less than one year.

...




ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT