Consider these 9 things before investing in mutual funds!
What is the right way to invest in mutual funds? How do mutual funds work? What kind of risk is involved? Which fund is right for whom? What things should be kept in mind before investing? Watch this video to know-
The Securities and Exchange Board of India (Sebi) has relaxed the mutual fund norms by allowing to invest unclaimed dividends and redemption in the overnight scheme, money market, and liquid schemes, on the condition that the unclaimed money should be from that particular scheme.
The unclaimed investor money could earlier be parked only under the debt schemes category in the overnight funds.
The market regular has said that the amendment will come into force from December 1.
“The unclaimed funds will be deployed only in those overnight, liquid, and money market funds that are placed in a relatively low-risk category,” as per the amendment made in the Sebi circular.
The circular further pointed out that no permission will be granted to asset management companies (AMCs) to charge any exit load in such mutual fund plans that are specifically launched to allow the deployment of unclaimed amounts. The total expense ratio of such plan will be capped as per the direct plan of such scheme or at 50 basis points whichever is lower, Sebi said.
It also said that the instance access facility will be provided with immediate effect only in the overnight and liquid schemes.