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The Association of Mutual Funds in India has reduced the ARN (AMFI Registration Number) and Renewal Fees of distributors by 50 per cent from May 1.
The EUIN (Employee Unique Identification Number) Registration has been reduced to ₹500 from ₹1,500, while that of renewal fees has been cut to ₹750.
The ARN Registration and Renewal Fees for the Individuals and Proprietorship firm has been reduced by 50 per cent to ₹1,500 and ₹750, respectively; while for the Post Office and Microfinance Institutions the ARN Registration and Renewal Fees stand reduced by 50 per cent to ₹7,500 and ₹3,750.
The Urban Co-Op Banks, Societies, Trusts, HUFs and Partnership Firms will pay Registration and renewal fees at 50 per cent reduction to ₹10,000 and ₹5,000, respectively; while the One Person Company, LLPs and private limited companies would pay 50 per cent downward revised Registration and Renewal Fees of ₹20,000 and ₹10,000, respectively.
All fees will be subject to applicable taxes.
Tapping young customers
AMFI wants to encourage new and young individuals to reach out to large base of small savers, especially in the Tier-II and -III cities, to channelise financial savings into mutual fund asset class.
The cut in fees comes when small distributors are finding it difficult to survive ever since SEBI introduced trail commission.
Nilesh Shah, Chairman, AMFI, said the aim is to have more small savers to benefit from long-term investment solutions offered by the mutual fund industry.
This initiative of reducing the fees would help larger number of individuals to come into mutual fund distribution fold and contribute to the last mile connectivity, he said.
NS Venkatesh, Chief Executive, AMFI, said the reduced fees would go a long way in helping the cause of Mutual Fund expansion.
Rising affinity for mutual fund asset class would get a strong fillip with this reduction in the fees for the distributor fraternity, he said.
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