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What is the maximum amount an AMC can charge as initial expenses from investors?

April 26, 2017AMC charge expenses initial investors maximum

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What is the maximum amount an AMC can charge as initial expenses from investors?

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SEBI has put a cap on the limit of initial expenses charged by AMC from investors. When an AMC is launching a new fund, maximum amount they can charge is 6% of total corpus collected from investors i.e. if total corpus is Rs1, 00,00,000 they can charge only Rs6, 00,000 from investors that can be amortized over 5 years.