SEBI slashes additional charges by mutual funds from 20 bps to 5 bps
Jun 05 2018
News Category: AMC Specific Updates
According to media reports, the Securities & Exchange Board of India (SEBI) lowered the additional expense charged by mutual fund schemes with effect from May 29. The announcement was in line with SEBI’s board meeting held in Mar. Accordingly, schemes charging an exit load (open ended schemes without lock in) can levy the additional 5 basis points charge. Earlier, the regulator had permitted mutual funds to charge up to 20 basis points of scheme AUM as a compensation for exit load. The move is expected to reduce the cost of investing in mutual funds. However, it may result in lower commission for distributors.