Circular on Mutual Funds

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....tion to investors, it has been decided that: 1. Each CAS issued to the investors shall also provide the total purchase value / cost of investment in each scheme. 2. Further, CAS issued for the half-year(September/ March) shall also provide: a. The amount of actual commission paid by AMCs/Mutual Funds (MFs) to distributors (in absolute terms) during the half-year period against the concerned investor's total investments in each MF scheme. The term 'commission' here refers to all direct monetary payments and other payments made in the form of gifts / rewards, trips, event sponsorships etc. by AMCs/MFs to distributors. b. The scheme's average Total Expense Ratio (in percentage terms) for the half-year period, of both di....

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.... key managerial personnel b. Illustration of impact of expense ratio on scheme's returns (by providing simple example). 3. Separate SID / KIM for each MF scheme managed by AMC shall also be made available on MFs / AMCs website. 4. Each MF is required to have a dashboard on their website providing performance and key disclosures pertaining to each scheme managed by AMC. The information should include scheme's AUM, investment objective, expense ratios, portfolio details, scheme's past performance, among others. Such information shall be provided in a comparable, downloadable (spreadsheet) and machine readable format. C. Disclosure Of Executive Remuneration: With the underlying objective to promote transparency in remunera....

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.... / due diligence before investing in fixed income products. E. Deployment of NFO Proceeds in CBLO: In partial amendment to clause 2(ii)(c) of SEBI circular dated March 15, 2010, Mutual funds are allowed to deploy NFO proceeds in CBLO before the closure of NFO period. However, AMCs shall not charge any investment management and advisory fees on funds deployed in CBLOs during the NFO period. The appreciation received from investment in CBLO shall be passed on to investors. Further, in case the minimum subscription amount is not garnered by the scheme during the NFO period, the interest earned upon investment of NFO proceeds in CBLO shall be returned to investors, in proportion of their investments, along-with the refund of the subscript....