Transaction Charges (TC) in respect of investments sourced by Distributors :

In respect of new investors

r subscription / SIP only),
where the transaction / SIP
Where such a transaction is
be Rs. 100/-.

i.e. first time ever investor in any Mutual Fund (fo

a Fund House is allowed to pay Rs. 150/- as TC only
commitment value is Rs. 10000/- and above.
from an existing investor, the corresponding TC will

In respect of systematic investments (SIP only), a TC of Rs. 100/- is payable in

4 equal installments, starting from the 2nd to the 5th installment, provided th
e total commitment towards SIP is for Rs.10000/- or above.
Unit holder's statement of account will reflect subscription amount, transaction
charges and net investment.
Asset Management Companies (AMCs) will deduct the TC from the subscription amoun
t and pay to the concerned ARN holder, subject to deduction of service tax, if a
ny. This could be in addition to existing upfront / trailer fees paid by the AMC
s, if any.
Categorization of Distributors as "Opt In" and "Opt Out"
SEBI has also introduced a concept of a distributor "Opting In" or "Opting Out"
for the purpose of transaction charges.
Opt in - An Opt In distributor is someone whose clients will be levied with tran
saction charges as described above, irrespective of the Fund where an applicatio
n is submitted.
Opt Out - An Opt Out distributor is someone whose clients will not be levied any
transaction charge by any Fund.
Please note that "Opt out" will be the DEFAULT OPTION for all distributors, unle
ss opted otherwise.
Transactions routed through the stock exchange route will not be covered for tra
nsaction charges.