What kinds of load and expense structures are applicable for open-ended and close-ended schemes? How much maximum can be charged under different load/expense heads?
Load is charged by schemes towards meeting marketing, sales and other distribution expenses. An open ended scheme can charge entry load at time of subscription and exit load at time of redemption. Maximum entry and exit loads for open-ended schemes are chargeable in such a way that maximum subscription price should be within 107% of NAV for subscription and minimum price within 93% of NAV for redemption. For close-ended schemes, minimum redemption price shall be within 95% of NAV. A close ended scheme can charge only initial issue expenses at time of subscription, not entry load. Maximum chargeable initial issue expenses are 6%. Since Close-ended schemes have a maturity tenure, so if redeemed before maturity, can charge an exit load from investors. The annual recurring expenses are charged annually by each scheme to meet scheme related miscellaneous operational expenses and the investment management fee. Though annual recurring expenses can be different for various plans within a schem
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- What kinds of load and expense structures are applicable for open-ended and close-ended schemes? How much maximum can be charged under different load/expense heads?
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