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Large information for individuals who put money into mutual funds: Bills will probably be lowered, extra earnings will get – mutual fund charges for small buyers SEBI Know in Hindi – jj
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Large information for individuals who put money into mutual funds: Bills will probably be lowered, extra earnings will get – mutual fund charges for small buyers SEBI Know in Hindi

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News18Hindi

Updated: September 19, 2018, 2:15 PM IST

If you invest money in a mutual fund, then this news is very important for you. Stock market regulator Sebi (Securities and Exchange Board of India) has changed the structure of the mutual fund industry. This will help investors investing in mutual funds. But fund houses can be damaged. Experts believe that this decision can lead to some problems with small investors, because distributors will not want to go to them if they have less benefit.

SEBI's decision-SEBI has set the maximum expenditure on investing in mutual funds, ie maximum limit expense ratio (TER). Now, TER for fund house with assets exceeding 50 thousand crore has been reduced from 1.75 to 1.05 percent. is. (Read also – Buytimes will be available from next month, these schemes, which will give more profits than banks)

Why change rule- According to Sebi Chairman Ajay Tyagi, the mutual fund industry is growing rapidly, but investors are not able to get the full benefit of this. According to the calculation they have done, reducing the TER will save about 1500 crore rupees on the revenues of 13,000 crores to investors. At the same time, this could reduce the profits of fund houses by up to 12 per cent.

What happens is TER-This is the fee that the fund houses charge every year to manage the money of investors. (Read also – these are the money launderers in these 3 mutual funds, you also have the opportunity)People who invest in mutual funds will benefit Experts say that TER has been reduced, which means that the cost of investors will be lower. This will increase their return (profits). Also, capping will increase transparency in the mutual fund industry.

Disadvantages to Distributors-SEBI has blocked advance commissions which fund distributors get investors to invest in the fund. This was very high at close-ended equity schemes many times. In some places there was advance commission of 1.25 percent. So in the few places the distributors used to take the Trail Commission only. But they will only get trail commission which will be around 1 per cent.

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