Today we will summarize key important mutual fund updates in the financial year 2012-2013.Financial year 2012-2013 was important for mutual funds as number of regulations hit mutual funds in the year & today we will summarize the same.
- Uniform KYC:Uniform KYC for stocks mutual funds through CVLKRA was introduced in the last financial year.It was necessary for investors investing for first time in any mutual fund house to provide the missing kyc information.
Please View:Difference Between mf-Verified by cvlmf & KYC-Verified by cvlkra.
- Regulations for advisers:Regulations for advisers hit in January & was expected to be implemented within 90 days from 21st January 2013.It was a very important to have regulations for advisers especially for them who have double dose on income – from brokerage & from advise also.
Also View: Are You Dealing With SEBI Registered Adviser
- Regulations towards applicability of NAV:
On september 12, 2013,SEBI comes with the regulations regarding applicability of NAV. In case of purchase of units in mutual fund schemes (other than liquid scheme) fro Rs.2 Lakh & above the closing NAV of the day on which the funds were actually available for utilization made applicable.Suppose if funds are available for utilization before 3:00 pm then same day NAV will be applicable otherwise next day NAV will be applicable.
- Introduction of direct Plans: Direct plans in mutual funds introduced effective from January 01, 2013.Investors of direct plans can save cost equivalent to the trail commission payable towards brokers.
Also View: Direct Plans from mutual funds.
- Increase in Dividend distribution tax (DDT): Dividend distribution tax which is payable by mutual funds while distributing dividend income for debt schemes.Earlier it was 12.25% & will be 25% from new financial year.One need to check actual impact of DDT & then think to switch out for growth option or anything similar.
