Market regulator Securities and Exchange Board of India (Sebi) recently said that “there shall be no entry load for schemes, existing or new”, a directive that has forced the mutual funds industry to gear up for a new fee structure from August 1 2009. Association of Mutual Funds in India (AMFI) Chairman A P Kurian told PTI that “it is a new system. It is investor-centric. All three stakeholders — distributors, fund houses and investors — will have to adjust to the new system.”
Currently, as much as 85 to 90 per cent of the industry’s business is generated through distributors, Kurian said.
Published 31 July 2009, 17:05 IST