TMI BlogLimitation on fees and expenses on issue of schemesX X X X Extracts X X X X X X X X Extracts X X X X ..... ants ; (x) insurance premium paid by the fund ; (xi) winding up costs for terminating a fund or a scheme ; (xii) costs of statutory advertisements ;] 6 [***] 7 [(xii-a) in case of a gold exchange traded fund scheme, recurring expenses incurred towards storage and handling of gold; 8 [***]] 26 [ (xiiaa) in case of a silver exchange traded fund scheme, recurring expenses incurred towards storage and handling of silver; ] 9 [(xii-b) in case of a capital oriented scheme, rating fees; 10 [***]] 11 [(xii-c) in case of a real estate mutual fund scheme, insurance premia and costs of maintenance of the real estate assets (excluding costs of development of such assets) over and above the expenses specified in regulation 52 to the extent disclosed in the offer document;] 12 [(xii-d) listing fees, in case of schemes listed on a recognised stock exchange; and] 25 [ (xiie) in case of schemes investing in exchange traded commodity derivatives, recurring expenses incurred towards storage and handling of the underlying goods, due to physical settlement of such contracts. ] 13 [(xiii)] such other costs as may be approved by the Board. (5 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a) and (b) above, the total expense ratio of the scheme shall not exceed the following limits: Assets under management Slab (In Rs. crore) Total expense ratio limits for equity oriented schemes Total expense ratio limits for other than equity oriented schemes on the first ₹ 500 crores of the daily net assets 2.25% 2.00% on the next ₹ 250 crores of the daily net assets 2.00% 1.75% on the next ₹ 1,250 crores of the daily net assets 1.75% 1.50% on the next ₹ 3,000 crores of the daily net assets 1.60% 1.35% on the next ₹ 5,000 crores of the daily net assets 1.50% 1.25% On the next ₹ 40,000 crores of the daily net assets Total expense ratio reduction of 0.05% for every increase of ₹ 5,000 crores of daily net assets or part thereof. On balance of the assets 1.05% ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... been launched prior to notification of these regulations. ******* 1 Substituted by the SEBI (Mutual Funds) (Second Amendment) Regulations, 2012, w.e.f. 01-10-2012. Prior to its substitution, Sub-regulation (2) read as under; (2) The Asset Management Company may charge the mutual fund with investment and advisory fees which are fully disclosed in the offer document subject to the following namely:- (i) One and a quarter of one per cent of the weekly average net assets outstanding in each accounting year for the scheme concerned, as long as the net assets do not exceed ₹ 100 crores, and (ii) One per cent of the excess amount over ₹ 100 crores, where net assets so calculated exceed ₹ 100 crores. Provided that in case of an index fund scheme, the investment and advisory fees shall not exceed three fourths of one percent (0.75%) of the weekly average net assets. 2 Omitted by the SEBI (Mutual Funds) (Amendment) Regulations, 2010, w.e.f. 29-7-2010. Prior to its omission, sub-regulations (3) read as under; (a) For schemes launched on a no load basis, the asset management company shall be entitled to collect an additional management fee no ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ] [#Inserted by the SEBI (Mutual Funds) (Amendment) Regulations, 1998, w.e.f. 12-1-1998] 16 Inserted by the SEBI (Mutual Funds)(Fourth Amendment) Regulations, 2018 w.e.f. 01-04-2019. 17 Substituted by the SEBI (Mutual Funds) (Fourth Amendment) Regulations, 2018, w.e.f. 01-04-2019. Prior to this substitution, the regulation read as: (6) The total expenses of the scheme excluding issue or redemption expenses, whether initially borne by the mutual fund or by the asset management company, but including the investment management and advisory fee shall be subject to the following limits:- (a) in case of a fund of funds scheme, the total expenses of the scheme including weighted average of charges levied by the underlying schemes shall not exceed 2.50 per cent of the daily net assets of the scheme. (b) in case of an index fund scheme or exchange traded fund, the total expenses of the scheme including the investment and advisory fees shall not exceed one and one half percent (1.5%) of the daily net assets; (c) in case of any other scheme- (i) on the first ₹ 100 crores of the daily net assets 2.5%; (ii) on the next ₹ 300 crores of the daily net assets ..... X X X X Extracts X X X X X X X X Extracts X X X X
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