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48.''SEBI also regulates the fees and expenses of Mutual Fund''. Explain
Investors have to carefully examine the fees and expense a Mutual Fund charges .It would not be painful for the investors to pay for the expenses and costs of the Fund when they derive satisfactory returns .But , the irony is that investors have to pay for the sale charges ,annual fees and many such other expenses , irrespective of how the Fund has performed . This explain the back or front -end loads , managements expenses and other expenses of the Fund.SEBI also regulates the fees and expenses of Mutual Fund .Thus , an MF investors should understand that over long -term the sucess of his investment in a Fund will mainly depend on facts such as the Fund's sales charges ,fee and expenses, the applicable taxes an investors has to pay when he receives a distribution either in the form of short -term capital gain or otherwise , the age and size of the Fund,the Fund's risk and volatility and above all the efficiency with which the investment strategy of the Fund is implemented.
Ans: SEBI also regulates the fees and expenses of Mutual Fund.A Mutual Funds .A Mutual Fund cannot cross limit of expenses that the SEBI provide .The SEBI guidelines prescribe limits for various expenses .The Asset Management Company may charge the Mutual Fund with investment and advisory fees, which are fully disclosed in the Offer Document. For schemes launched on a no load basis , the Asset Management Company shall be entitled to collect an additional management fee not exceeding 1% of the weekly average net assets outstanding in each financial year.In addition to the fees mentioned , the Asset Management Company may charge the Mutual Fund with expenses specified in the regulation.The total expenses of the scheme excludes issue or redemption expensses,whether initially borne by the Mutual Fund or by the Asset Management Company , but shall include the investment management and advisory fee subject to certain limits.