Table of Contents
How much does AMC charge for mutual funds?
As per SEBI guidelines, an Asset Management Company (AMC) can deduct transaction charge of Rs 150 (for a first time investor across mutual funds) or Rs 100 (for investor other than first time mutual fund investor) per purchase / subscription of Rs 10,000 and above, which are deductible from the purchase / subscription …
Can I buy mutual funds directly from AMC?
You may invest in the direct plan of mutual funds directly through the AMC both offline and online. You may also invest in mutual funds through a mutual fund distributor.
Do mutual funds have maintenance fees?
Mutual Fund Fees and Expenses. Not all funds have an associated load. However, all funds charge annual expenses to cover the fund’s operating costs, including management fees, distribution and service fees (commonly known as 12b-1 fees), and general administrative expenses.
Which expenses Cannot be charged to the mutual fund scheme by AMC?
At present Mutual Funds cannot charge entry load. Exit Load: The mutual fund would buy back the units at rate lower than the NAV….2. Recurring Charges (Ongoing expenses/Fund Running Expenses):
| The SEBI limit on TER is as follows: | ||
|---|---|---|
| Daily Net Assets | Equity Funds | Debt Funds |
| Over and above Rs. 700 Cr | 1.75\% | 1.50\% |
What are the charges of buying mutual funds?
Generally, the charges are 2.25\% of the investment value. However, as per a recent regulation by the SEBI, fund houses can no longer charge an entry load.
How often are mutual fund fees charged?
A shareholder pays the fee on a daily basis through an automatic reduction in the price of a fund. It can be difficult for the average investor to get a feel for how much is being paid for any particular fund. Mutual-fund expense ratios vary greatly from one investment category to another.
How do I find out what my mutual fund fees are?
Exit Load: The mutual fund would buy back the units at rate lower than the NAV. There are no fixed exit loads which are charged….Rs. 2.50 Cr.
| Fund Size | Expense ratio computation | Expense Ratio |
|---|---|---|
| Fund with Rs. 1000 Cr Net assets | Rs. 20.50/1000 Cr | 2.05\% |
| Fund with Rs. 100 Cr Net assets | Rs. 2.50/100 Cr | 2.50\% |
What are AMC charges in mutual funds?
Annual management charges (AMC) Annual management charges (AMC) are generally applied as a percentage of the assets of the fund, for example 0.5\% of fund assets per annum. Charges could also include a fixed monetary portfolio management fee.
What should an investor look for when investing in AMC?
Fund Manager’s credibility- AMC work in parallel to its fund manager. The performance of the fund manager is now the performance of AMC then. Hence, an investor must look for past performance of the fund manager w.r.t managing the assets and funds.
What does AMC stand for?
Annual management charges (AMC) Annual management charges (AMC) are generally applied as a percentage of the assets of the fund, for example 0.5\% of fund assets per annum.
How does AMC maintain the diversity of portfolio?
AMC maintains the diversity of portfolio by investing in both high-risk and low-risk securities such as stock, debt, real- estate, shares, bonds, pension funds, etc. Factors such as industry risk, market risk, return risk, political risk are considered before selecting any security to meet the return on investment targets.