The Securities and Exchange Board of India’s (Sebi) circular dated 18 March 2016—that mandated additional disclosures about how much money your mutual fund distributor makes on your investment in absolute terms and how much salary your fund managers (and other top mutual fund officials) earn—kicked up quite a storm.
Fund houses will now need to disclose how much commission your distributor has earned on your investment—on a half-yearly basis—in your half-yearly common account statement (CAS), in absolute terms. The statement will also show the expense ratio of direct and regular plans of your MF scheme. The fund houses’ websites will provide details of how much their money managers and chief executive officers earn. Scheme Information Documents of every MF scheme will also mention how much—if at all—they have invested in that scheme. There are a few other requirements, but they are not as important, so we will leave them aside for now.
