Advisors can now choose to opt in for transaction charges across 11 scheme categories.
AMFI has allowed a provision for distributors to opt in or opt out of transaction charges based on the type of products till November 17, 2012. Earlier an opt-in option was applicable for all schemes. Distributors can change their current status on transaction charges by submitting an option letter to CAMS.
The option exercised for a particular product category will be applicable across all AMCs. For instance, if a distributor opts in for equity schemes, it will be applicable to across all AMCs.
AMFI has given two half yearly windows (between March 1st to March 25th and September 1st to September 25th). The new status change will be applicable from the immediately succeeding month.
Last year, SEBI had introduced a transaction charge of Rs 150 for first time mutual fund investors and Rs 100 for existing investors for distributors for a subscription amount of Rs 10,000 and above. This money is deducted from the subscription amount and paid to distributors after deducting service tax.
Distributors can opt in or opt out for the following schemes:
Liquid/money market schemes, gilt schemes, debt schemes, infrastructure debt fund schemes, equity linked saving schemes (ELSS), other equity schemes, balanced schemes, gold exchange traded funds, other exchange traded funds, fund of funds investing overseas, fund of funds domestic.
Download option letter here
