Business Daily from THE HINDU group of publications
Tuesday, Aug 10, 2010
ePaper | Mobile/PDA Version | Audio | Blogs
Business Daily from THE HINDU group of publications Tuesday, Aug 10, 2010 ePaper | Mobile/PDA Version | Audio | Blogs |
|
|
|
|
|
Home Page
-
Mutual Funds Markets - Regulatory Bodies & Rulings Our Bureau Mumbai, Aug. 9 The Securities and Exchange Board of India has said that fund houses offering fund of funds schemes need to clearly spell out the expense structure that they would be adopting post- July 29. The regulator has stipulated that fund houses, after getting approval from their trustees, are expected to inform unit holders about the expense structure that they would adopt going forward. Mutual funds offering a fund of funds scheme can either levy a management fee not exceeding 0.75 per cent or management fee not exceeding 0.75 per cent plus other administrative expenses plus underlying scheme charges subject to a cap of 2.5 per cent on a daily/weekly NAV basis. BETTER COMMUNICATION Further, the regulator has advised fund houses to give unit holders an exit option, if they deem fit to exit before implementing the new expense structure. Commenting on the development, Mr Rajesh Krishnamoorthy, Managing Director of iFAST Financial, a financial planning Web site, said: “Communication to the investor will have to carry an illustration of how each option in the expense structure will affect his investment. “This will help one in taking an informed decision on what one should do with one's investment.” MF sales personnel are circumspect about whether the investor will actually understand what is being communicated to him by the regulator. Management fee Earlier, it was 2.5 per cent for investment management and advisory plus a management fee of 0.75 per cent for fund of funds making it a maximum of 3.25 per cent. Now, it is 0.75 per cent or 0.75 per cent plus other expenses subject to a maximum of 2.5 per cent. SEBI amends MF regulations Entry load: Effect of SEBI's decision on AMCs and investors SEBI to come out with working paper on selling practices of MFs More Stories on : Mutual Funds | Regulatory Bodies & Rulings
Article E-Mail :: Comment :: Syndication :: Printer Friendly Page
|
|
The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription Group Sites: The Hindu | The Hindu ePaper | Business Line | Business Line ePaper | Sportstar | Frontline | The Hindu eBooks | The Hindu Images | Home |
Copyright © 2010, The
Hindu Business Line. Republication or redissemination of the contents of
this screen are expressly prohibited without the written consent of
The Hindu Business Line
|