If you're looking for new fund offers, chances are they
will be few and far between. That's because SEBI has raised
the filing fee for new offers by 400 per cent, reports
has increased its filing fee by 400 per cent. Mutual funds
must now cough up at least Rs1 lakh or 0.03 per cent of
the amount a new offer raises, whichever is higher, up
from SEBI's filing fees of Rs25,000 at present.
say this will particularly hit Fixed Maturity Plans, which
have spun good money for the industry in recent times.
Suppose a Fixed Maturity Plan raises Rs 250 crore, it
will now have to pay Rs 7.5 lakh as filing fees. This
fee must be paid upfront. Of course, it will be passed
on to investors.
new fund may charge up to 6 per cent of the amount it
raises as expenses, which includes commissions and marketing
expenses. Fixed Maturity Plans and cash funds generally
tend to maintain low expense ratios. In the past four
months, 51 fixed maturity plans
have raised over Rs14,000 crore. Fund houses say the increase
will have a marginal impact on fund expenses but it may
stem the flow of fixed maturity plans.