Investing in Mutual Funds – Know your charges.

When investing in mutual funds – know your charges, so you will not be caught off guard while calculating the total returns on your investments. Investors in Mutual Funds do always consider various fund related factors like Manager, performance, ratings, returns etc prior to making a decision. However, one aspect that few look into are the charges paid to make these investments.

All investors investing in mutual funds conduct some background checks on schemes and fund houses they invest their hard earned money into. Is the Fund manager experienced, are the returns consistent etc, are few aspects which are considered. As this factors do have a major bearing on the overall performance of the money that you have invested. The lesser known fact is that recently many banks and other Mutual Fund agents have started charging their customers through what are called are Transaction Charges or Transaction Fees.

Recent mandate by SEBI, a government body which regulates the Indian Mutual Fund Industry allowed agents/brokers to charge the every new customers Rs.150 as transaction charges for first transaction where the total value exceeds Rs.10000. This includes new Systematic Investment Plan investors as well.
Existing investors of Mutual Fund schemes are charged. They also need to pay Rs.100 as transaction charges for first transaction where the total value exceeds Rs.10000. This includes existing Systematic Investment Plan investors as well provided the total commitment towards SIP is for Rs.10000/- or above.
In respect of systematic investment plan (SIP only), a transaction charge of Rs.100/- is payable in 4 equal instalments, starting from the 2nd to the 5th instalment. So read your statements to know your charges of Rs.25 from your 2nd to 5th SIP instalment. These charges would be deducted from your total amount invested by the Fund in which you are investing then the balance would be your net investment in the scheme. So look out for those innocuous charges ranging from Rs.25 to Rs.150 in your next Mutual Fund Account Statement. If you do notice those charges on your Mutual Fund Account Statement, you know you read it first here at OnlineMF.

MF CHARGES

MUTUAL FUND TRANSACTION CHARGES

I hate these charges, we all do. So is there a solution?

Not all investors would be charged these fees. If your total investments do not go beyond Rs.10000, you would be not charged. SEBI has also granted an option for agents/brokers to not charge their customers for these fees. Many have opted not to charge these fees to their customers. Brokers can decide category of schemes they intend to charge depending on the same, investors can opt for such brokers. So next time you can ask your broker about these fees and can decide knowing if it’s worth opting for it.

Final Word

The Mutual Fund industry has some of the lowest charges paid by investors compared to other products available in the market. The Mutual Fund government regulator is very proactive towards the interest of the investors. The Indian Mutual Fund Industry strives to portray transparency to its investors to the extent possible. It’s always good to be an informed investor, however, not making an investment would be a bigger mistake. So next time you invest in mutual fund, keep in mind the these charges, do not be much concerned and go ahead with your planned investments in the Funds to suit your goals.

Wishing you all Happy Investing In Mutual Funds.
© OnlineMF
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How to file a mutual fund complaint with SEBI?

Often many investors ask how to file a mutual fund complaint with SEBI after their numerous attempts to resolve their mutual fund related queries. OnlineMF tries to explain to the entire process of filing a online mutual fund complaint form with the mutual fund regulator SEBI.

USE THIS AS THE LAST MEANS OF PROBLEM SOLUTION

All investors should knock on the doors of the regular SEBI only after all the other means of finding a resolution for investor complains are not met. Mutual Fund Complaints should be addressed with the respective Mutual fund companies before you adopt this route.

SEBI INVESTOR COMPLAINT WEBSITE http://scores.gov.in/default.aspx

SEBI SCORES (SEBI Complaints Redress System)

 
ONLINE MODE

1] Log on to SEBI SCORES (SEBI Complaints Redress System)

http://scores.gov.in/default.aspx

2] Select Complaint Registration under Investor Corner

Update all the below information like

  • Name of Investor  :  
  • Complaint Lodged by  :  
  • Address of Correspondence of  Investor  :    
  • City/Location  :  
  • Pin Code  :  
  • State/UT :
  • PAN of Investor  :  
  • Phone Number  :  
  • Mobile Number (For receiving SMS)
  • E-mail Address of Investor 

Ensure the highlighted information are accurately filled up in your mutual fund complain to SEBI.

 3] Select Appropriate Category

  • Listed Companies/ Registrars & Transfer Agents
  • Brokers/Stock Exchanges
  • Depository Participants/Depository
  • Mutual Funds
  • Other Entities
  • Information to SEBI

Click on Mutual Fund Category to register investor complaint

4] Complete the Online Complaint form

Selected Category :   Mutual Funds 

*Complaint Against  : 

*Nature of Complaint Related to  :  MutualFunds 

 Select the appropriate nature of your complaint for any of the below options:

  •  Delay/Non-receipt of dividend on Units 
  •  Delay/Non-receipt of Interest on delayed payment of Dividend
  •  Delay/Non-receipt of Redemption Proceeds 
  •  Delay/Non-receipt of Interest on delayed payment of Redemption
  •  Non-receipt of Statement of Account/Unit Certificate 
  •  Discrepancy in Statement of Account 
  •  Non receipt of Annual Report/ Abridged Summary
  •  Wrong Switch between Schemes
  •  Unauthorised Switch between schemes
  •  Deviation from scheme attributes
  •  Wrong or excess charges/load
  •  Non updation of changes viz.address, PAN, bank details, nomination, etc
  •  Non receipt of Annual Account
  •  Others 

5] Select the mode of your Mutual Fund holdings

  •  Physical Mode
  •  Demat Mode

6] Complete the image verification

Verify and complete the image verification by tying in the numbers/alphabets provided in the image into the comments box in the same format.

7] Click on Submit Button

Once you complete the online mutual fund complaint you would be provided with a registration number. Do remember to store carefully this complaint registration number for future reference.

An email is generated instantaneously acknowledging the receipt of the complaint and allotting a unique complaint registration number for future reference and tracking.

PHYSICAL /OFFLINE MUTUAL FUND COMPLAINT

If you are facing issues registering your online mutual fund complaint form OR you do not have access to Computer or Internet Connection you can register your complain by calling on the phone number of SEBI at 022-26449188/26449199. Investors can also send the complaint physically by post to any of the Offices of SEBI.

 USEFUL MUTUAL FUND RELATED INFORMATION

SEBI TOLL-FREE PHONE NUMBER

SEBI helpline Number: Use the SEBI Mutual Fund helpline number 1800-22-7575 and 1800-266-7575 for your investor related questions.

SEBI INVESTOR’S WEBSITE

Before you register mutual fund complaints to SEBI check the investor website for more details. SEBI INVESTOR’S WEBSITE http://investor.sebi.gov.in

Back to Basics Series II : This article is in response to SEBI’s Public Appeal for following the right approach to Mutual Fund Industry.

SEBI Investor Education
©OnlineMF

Mutual Fund Trends on Stock Exchanges APR-2008.

Trends in Transactions on Stock Exchanges by Mutual Funds
(as on 10-APR-2008)

(Provisional and subject to revision) April 2007
Trading Date Debt/Equity Gross Purchases(Rs Crores) Gross Sales(Rs Crores) Net Investment (Rs Crores)
01-APR-2008 Equity 403.20 688.20 (285.00)
Debt 0.00 0.00 0.00
02-APR-2008 Equity 520.90 648.80 (127.90)
Debt 3364.70 1610.60 1754.10
03-APR-2008 Equity 531.20 599.80 (68.60)
Debt 3687.90 1925.40 1762.50
04-APR-2008 Equity 396.80 559.30 (162.50)
Debt 1722.90 648.30 1074.70
07-APR-2008 Equity 598.20 638.10 (40.00)
Debt 6024.50 1504.90 4519.60
08-APR-2008 Equity 635.00 545.20 89.80
Debt 3202.90 936.80 2266.10
09-APR-2008 Equity 644.30 429.90 214.40
Debt 2908.30 1541.60 1366.70
10-APR-2008 Equity 610.20 293.50 316.70
Debt 1666.20 922.10 744.20
Total Equity 4339.8003 4402.8003 -63.0
Debt 22577.4 9089.699 13487.701
The above report is compiled on the basis of reports submitted to SEBI by custodians on 10-APR-2008 and constitutes trades conducted by Mutual Funds.

STATUS OF MUTUAL FUNDS INDUSTRY IN INDIA

STATUS OF MUTUAL FUNDS INDUSTRY IN INDIA FOR THE PERIOD APRIL – FEBRUARY 2008

No. of Schemes

No. of folios

Funds mobilized

Repurchase/ Redemption

Net Inflow (+ve)/ Outflow (-ve)

Unit Capital as on February 29, 2008

Net Assets as on February 29, 2008

Average Asset under Management

Open

Closed

Total

Open

Closed

Total

Open

Closed

Total

Open

Closed

Total

Open

Closed

Total

Open

Closed

Total

Open

Closed

Total

(in Rs. Crores)

(in Rs. Crores)

(in Rs. Crores)

(in Rs. Crores)

(no. of units, in crores)

(in Rs. Crores)

A

INCOME / DEBT ORIENTED SCHEMES

i

Liquid/ Money Market

57

0

57

187312

0

187312

3075630.85

0.00

3075630.85

3037721.05

0.00

3037721.05

37909.80

0.00

37909.80

7861.23

0.00

7861.23

112399.98

0.00

112399.98

112149.01

ii

Gilt

30

0

30

23777

0

23777

2538.66

0.00

2538.66

2521.37

0.00

2521.37

17.29

0.00

17.29

156.42

0.00

156.42

2443.41

0.00

2443.41

2196.06

iii

Debt(other than ass.re)

205

242

447

2399814

361051

2760865

697560.57

82162.66

779723.23

579626.99

98843.03

678470.02

117933.58

-16680.36

101253.21

11552.69

7409.09

18961.78

155779.39

76648.79

232428.18

231769.31

iv

Debt (assured return)

0

0

0

0

0

0

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

(i+ii+iii+iv)

Sub total

292

242

534

2610903

361051

2971954

3775730.08

82162.66

3857892.74

3619869.41

98843.03

3718712.43

155860.67

-16680.36

139180.31

19570.34

7409.09

26979.42

270622.78

76648.79

347271.57

346114.39

B

GROWTH / EQUITY ORIENTED SCHEMES

i

ELSS

29

10

39

5445039

773407

6218446

4361.57

0.00

4361.57

137.10

144.79

281.89

4224.47

-144.79

4079.68

500.28

88.37

588.65

14490.36

2207.79

16698.15

16578.77

ii

Others

221

42

263

22698570

6911680

29610250

91846.33

17647.22

109493.56

69106.75

4288.66

73395.40

22739.58

13358.57

36098.15

6786.51

3487.99

10274.50

141404.58

34493.78

175898.35

179606.67

(i+ii)

Sub total

250

52

302

28143609

7685087

35828696

96207.90

17647.23

113855.12

69243.85

4433.45

73677.30

26964.05

13213.78

40177.83

7286.79

3576.36

10863.15

155894.94

36701.57

192596.51

196185.44

C

BALANCED SCHEMES

i

Balanced schemes

32

6

38

2775297

132910

2908207

10588.86

344.82

10933.68

4927.10

257.29

5184.39

5661.76

87.53

5749.29

387.95

90.08

478.03

15421.00

2942.70

18363.70

18667.87

D

EXCHANGE TRADED FUND

i

GOLD ETF

5

0

5

75884

0

75884

402

0

402

132

0

132

270

0

270

0

0

0

493

0

493

475

ii

Other ETFs

8

0

8

7639

0

7639

8471

0

8471

10843

0

10843

-2372

0

-2372

6

0

6

4096

0

4096

4723

GRAND TOTAL

587

300

887

33613332

8179048

41792380

3891399

100155

3991554

3705015

103534

3808549

186384

-3379

183005

27252

11076

38327

446527

116293

562819.95

566166.00

D

Fund of Funds Scheme

20

15

35

205209

32441

237650

2887.86

339.54

3227.40

1201.21

992.61

2193.82

1686.66

-653.07

1033.59

215.32

82.59

297.92

3002.32

876.81

3879.12

3767.00

No.of schemes also includes serial plans.

Notes

1. Erstwhile UTI has been divided into UTI Mutual Fund (registered with SEBI) and the Specified Undertaking of UTI (not registered with SEBI). Above data contains information only of UTI Mutual Fund.

MF industry at a glance.

Mutual Fund Industry at a glance.

Status of Mutual Funds for the period April 2007 – February 2008

(Figs in Rs. Crore)

Private Sector Mutual Funds

Public Sector Mutual Funds

Grand

Total

A

UTI

(i)

Others

(ii)

Sub-total

(i)+(ii)

B

A+B

Mobilisation of Funds

3392284.83

304035.33

295233.55

599268.88

3991553.71

Repurchase / Redemption Amt.

3237246.65

288461.46

282840.98

571302.44

3808549.09

Net Inflow/ Outflow

(-ve) of funds

155038.19

15573.87

12392.57

27966.43

183004.62

Cumulative Position of net assets as on February 29, 2008 (%)

459670.07

(81.67%)

56625.35

(10.06%)

46524.53

(8.27%)

103149.88

(18.33%)

562819.95


Note:

1. Net assets of Rs. 3879.12 crores pertaining to Fund of Funds Schemes is not included in the above data.