POSTED BY July 6, 2012 11:51 am COMMENTS (8)ON
Pls give ur comments for mutual funds and investors after going thru this link…
Pls see this link http://www.thehindu.com/todays-paper/tp … 596434.ece
The MF industry made out a case for hiking the expense ratio, including administrative fee and marketing cost by 25 basis points and also demanded that the sub-ceilings under the expense ratio be done away with. “Service tax should be borne by investors and should be kept out of the total expense ratio. We discussed how to increase retail participation. We have asked them to increase the total expense ratio to 2.25 per cent,” Association of Mutual Funds of India (AMFI) CEO H. N. Sinor told newspersons after the meeting. The mutual fund industry has requested the Finance Ministry to put the onus of service tax on the end-user or investor. It has also sought an increase in the expense ratio to 225 basis points.
3. If the proposals to increase fees by the industry are accepted by the Ministry, investors would stand to lose and MFs would become less attractive as the actual investment in schemes would tend to decline as asset management companies (AMCs) would pocket a larger portion as management fees.