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Introduction |
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Different investment avenues are available to investors. Mutual funds
also offer good investment opportunities to the investors. Like all
investments, they also carry certain risks. The investors should compare
the risks and expected yields after adjustment of tax on various
instruments while taking investment decisions. The investors may seek
advice from experts and consultants including agents and distributors of
mutual funds schemes while making investment decisions.
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| With an objective to make the investors aware of functioning of mutual
funds, an attempt has been made to provide information in
question-answer format which may help the investors in taking investment
decisions. |
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L&T Mutual Fund Views on Markets and Sectors, Presented at Bloomberg UTV event - New Delhi - 19th June 2010 |
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What is a Mutual Fund? |
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Mutual fund is a mechanism for pooling the resources by issuing
units to the investors and investing funds in securities in
accordance with objectives as disclosed in offer document.
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Investments in securities are spread across a wide cross-section of
industries and sectors and thus the risk is reduced. Diversification
reduces the risk because all stocks may not move in the same direction
in the same proportion at the same time. Mutual fund issues units to the
investors in accordance with quantum of money invested by them.
Investors of mutual funds are known as unitholders.
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| The profits or losses are shared by the investors in
proportion to their investments. The mutual funds normally
come out with a number of schemes with different investment
objectives which are launched from time to time. A mutual
fund is required to be registered with Securities and
Exchange Board of India (SEBI) which regulates securities markets before
it can collect funds from the public. |
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What is the history of Mutual Funds in India and role of SEBI in mutual
funds industry? |
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Unit Trust of India was the first mutual
fund set up in India in the year 1963. In early 1990s,
Government allowed public sector banks and institutions to
set up mutual funds.
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In the year 1992, Securities and exchange
Board of India (SEBI) Act was
passed. The objectives of SEBI are – to protect the interest of
investors in securities and to promote the development of
and to regulate the securities market.
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As far as mutual funds are concerned, SEBI formulates policies and
regulates the mutual funds to protect the interest of the investors.
SEBI notified regulations for the mutual funds in 1993. Thereafter,
mutual funds sponsored by private sector entities were allowed to enter
the capital market. The regulations were fully revised in 1996 and have
been amended thereafter from time to time. SEBI has also issued
guidelines to the mutual funds from time to time to protect
the interests of investors.
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| All mutual funds whether promoted by public sector or private sector
entities including those promoted by foreign entities are governed by
the same set of Regulations. There is no distinction in regulatory
requirements for these mutual funds and all are subject to monitoring
and inspections by SEBI. The risks associated with the schemes launched
by the mutual funds sponsored by these entities are of
similar type. |
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How is a mutual fund set up? |
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A mutual fund is set up in the form of a trust, which has sponsor,
trustees, asset management company (AMC) and custodian. The trust is
established by a sponsor or more than one sponsor who is like promoter
of a company. The trustees of the mutual fund hold its property for the
benefit of the unitholders. Asset Management Company (AMC) approved by
SEBI manages the funds by making investments in various types of
securities. Custodian, who is registered with SEBI, holds the securities
of various schemes of the fund in its custody. The trustees are vested
with the general power of superintendence and direction over AMC. They
monitor the performance and compliance of SEBI Regulations by the mutual
fund.
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| SEBI Regulations require that at least two thirds of the directors of
trustee company or board of trustees must be independent i.e. they
should not be associated with the sponsors. Also, 50% of the directors
of AMC must be independent. All mutual funds are required to be
registered with SEBI before they launch any scheme. |
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What is Net Asset Value (NAV) of a scheme? |
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The performance of a particular scheme of a mutual fund is denoted by
Net Asset Value (NAV).
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| Mutual funds invest the money collected from the investors in securities
markets. In simple words, Net Asset Value is the market value of the
securities held by the scheme. Since market value of securities changes
every day, NAV of a scheme also varies on day to day basis. The NAV per
unit is the market value of securities of a scheme divided by the total
number of units of the scheme on any particular date. For example, if
the market value of securities of a mutual fund scheme is Rs 200 lakhs
and the mutual fund has issued 10 lakhs units of Rs. 10 each to the
investors, then the NAV per unit of the fund is Rs.20. NAV is required
to be disclosed by the mutual funds on a regular basis - daily or weekly
- depending on the type of scheme. |
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What are the different types of mutual fund schemes? |
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Schemes according to Maturity Period: |
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A mutual fund scheme can be classified into open-ended scheme or
close-ended scheme depending on its maturity period. |
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Open-ended Fund/ Scheme
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An open-ended fund or scheme is one that is available for subscription
and repurchase on a continuous basis. These schemes do not have a fixed
maturity period. Investors can conveniently buy and sell units at Net
Asset Value (NAV) related prices which are declared on a daily basis.
The key feature of open-end schemes is liquidity. |
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Close-ended Fund/ Scheme |
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A close-ended fund or scheme has a stipulated maturity period e.g. 5-7
years. The fund is open for subscription only during a specified period
at the time of launch of the scheme. Investors can invest in the scheme
at the time of the initial public issue and thereafter they can buy or
sell the units of the scheme on the stock exchanges where the units are
listed. In order to provide an exit route to the investors, some
close-ended funds give an option of selling back the units to the mutual
fund through periodic repurchase at NAV related prices. SEBI Regulations
stipulate that at least one of the two exit routes is provided to the
investor i.e. either repurchase facility or through listing on stock
exchanges. These mutual funds schemes disclose NAV generally on weekly
basis. |
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Schemes according to Investment Objective: |
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A scheme can also be classified as growth scheme, income scheme, or
balanced scheme considering its investment objective. Such schemes may
be open-ended or close-ended schemes as described earlier. Such schemes
may be classified mainly as follows: |
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Growth / Equity Oriented Scheme |
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The aim of growth funds is to provide capital appreciation over the
medium to long- term. Such schemes normally invest a major part of their
corpus in equities. Such funds have comparatively high risks. These
schemes provide different options to the investors like dividend option,
capital appreciation, etc. and the investors may choose an option
depending on their preferences. The investors must indicate the option
in the application form. The mutual funds also allow the investors to
change the options at a later date. Growth schemes are good for
investors having a long-term outlook seeking appreciation over a period
of time. |
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Income / Debt Oriented Scheme |
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The aim of income funds is to provide regular and steady income to
investors. Such schemes generally invest in fixed income securities such
as bonds, corporate debentures, Government securities and money market
instruments. Such funds are less risky compared to equity schemes. These
funds are not affected because of fluctuations in equity markets.
However, opportunities of capital appreciation are also limited in such
funds. The NAVs of such funds are affected because of change in interest
rates in the country. If the interest rates fall, NAVs of such funds are
likely to increase in the short run and vice versa. However, long term
investors may not bother about these fluctuations. |
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Balanced Fund |
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The aim of balanced funds is to provide both growth and regular income
as such schemes invest both in equities and fixed income securities in
the proportion indicated in their offer documents. These are appropriate
for investors looking for moderate growth. They generally invest 40-60%
in equity and debt instruments. These funds are also affected because of
fluctuations in share prices in the stock markets. However, NAVs of such
funds are likely to be less volatile compared to pure equity funds |
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Money Market or Liquid Fund |
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These funds are also income funds and their aim is to provide easy
liquidity, preservation of capital and moderate income. These schemes
invest exclusively in safer short-term instruments such as treasury
bills, certificates of deposit, commercial paper and inter-bank call
money, government securities, etc. Returns on these schemes fluctuate
much less compared to other funds. These funds are appropriate for
corporate and individual investors as a means to park their surplus
funds for short periods. |
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Gilt Fund |
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These funds invest exclusively in government securities. Government
securities have no default risk. NAVs of these schemes also fluctuate
due to change in interest rates and other economic factors as is the
case with income or debt oriented schemes. |
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Index Funds |
Index Funds replicate the portfolio of a particular index such as the
BSE Sensitive index, S&P NSE 50 index (Nifty), etc These schemes invest
in the securities in the same weightage comprising of an index. NAVs of
such schemes would rise or fall in accordance with the rise or fall in
the index, though not exactly by the same percentage due to some factors
known as "tracking error" in technical terms. Necessary disclosures in
this regard are made in the offer document of the mutual fund scheme.
There are also exchange traded index funds launched by the mutual funds
which are traded on the stock exchanges. |
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What are sector specific funds/schemes? |
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| These are the funds/schemes which invest in the securities of only those
sectors or industries as specified in the offer documents. e.g.
Pharmaceuticals, Software, Fast Moving Consumer Goods (FMCG), Petroleum
stocks, etc. The returns in these funds are dependent on the performance
of the respective sectors/industries. While these funds may give higher
returns, they are more risky compared to diversified funds. Investors
need to keep a watch on the performance of those sectors/industries and
must exit at an appropriate time. They may also seek advice of an
expert. |
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What are Tax Saving Schemes? |
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| These schemes offer tax rebates to the investors under specific
provisions of the Income Tax Act, 1961 as the Government offers tax
incentives for investment in specified avenues. e.g. Equity Linked
Savings Schemes (ELSS). Pension schemes launched by the mutual funds
also offer tax benefits. These schemes are growth oriented and invest
pre-dominantly in equities. Their growth opportunities and risks
associated are like any equity-oriented scheme. |
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What is a Load or no-load Fund?
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A Load Fund is one that charges a percentage of NAV for entry or exit.
That is, each time one buys or sells units in the fund, a charge will be
payable. This charge is used by the mutual fund for marketing and
distribution expenses. Suppose the NAV per unit is Rs.10. If the entry
as well as exit load charged is 1%, then the investors who buy would be
required to pay Rs.10.10 and those who offer their units for repurchase
to the mutual fund will get only Rs.9.90 per unit. The investors should
take the loads into consideration while making investment as these
affect their yields/returns. However, the investors should also consider
the performance track record and service standards of the mutual fund
which are more important. Efficient funds may give higher returns in
spite of loads.
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| A no-load fund is one that does not charge for entry or exit. It means
the investors can enter the fund/scheme at NAV and no additional charges
are payable on purchase or sale of units. |
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Can a mutual fund impose fresh load or increase the load beyond the level mentioned in the offer documents? |
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| Mutual funds cannot
increase the load beyond the level mentioned in the
offer document. Any change in the load will be
applicable only to prospective investments and not to
the original investments. In case of imposition of fresh
loads or increase in existing loads, the mutual funds
are required to amend their offer documents so that the
new investors are aware of loads at the time of
investments. |
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What is a sales or repurchase/redemption price? |
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The price or NAV a unitholder is charged while investing in an
open-ended scheme is called sales price. It may include sales load, if
applicable.
Repurchase or redemption price is the price or NAV at which an
open-ended scheme purchases or redeems its units from the unitholders.
It may include exit load, if applicable. |
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What is an assured return scheme? |
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Assured return schemes are those schemes that assure a specific return
to the unitholders irrespective of performance of the scheme.
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A scheme cannot promise returns unless such returns are fully guaranteed
by the sponsor or AMC and this is required to be disclosed in the offer
document.
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| Investors should carefully read the offer document whether return is
assured for the entire period of the scheme or only for a certain
period. Some schemes assure returns one year at a time and they review
and change it at the beginning of the next year. |
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Can a mutual fund change the asset allocation while deploying funds of investors? |
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| Considering the market trends, any prudent fund managers can change the
asset allocation i.e. he can invest higher or lower percentage of the
fund in equity or debt instruments compared to what is disclosed in the
offer document. It can be done on a short term basis on defensive
considerations i.e. to protect the NAV. Hence the fund managers are
allowed certain flexibility in altering the asset allocation considering
the interest of the investors. In case the mutual fund wants to change
the asset allocation on a permanent basis, they are required to inform
the unitholders and giving them option to exit the scheme at prevailing
NAV without any load. |
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How to invest in a scheme of a mutual fund? |
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Mutual funds normally come out with an advertisement in newspapers
publishing the date of launch of the new schemes. Investors can also
contact the agents and distributors of mutual funds who are spread all
over the country for necessary information and application forms. Forms
can be deposited with mutual funds through the agents and distributors
who provide such services. Now a days, the post offices and banks also
distribute the units of mutual funds. However, the investors may please
note that the mutual funds schemes being marketed by banks and post
offices should not be taken as their own schemes and no assurance of
returns is given by them. The only role of banks and post offices is to
help in distribution of mutual funds schemes to the investors.
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| Investors should not be carried away by commission/gifts given by
agents/distributors for investing in a particular scheme. On the other
hand they must consider the track record of the mutual fund and should
take objective decisions. |
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Can non-resident Indians (NRIs) invest in mutual funds? |
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| Yes, non-resident Indians can also invest in mutual funds. Necessary
details in this respect are given in the offer documents of the schemes. |
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How much should one invest in debt or equity oriented schemes? |
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| An investor should take into account his risk taking capacity, age
factor, financial position, etc. As already mentioned, the schemes
invest in different type of securities as disclosed in the offer
documents and offer different returns and risks. Investors may also
consult financial experts before taking decisions. Agents and
distributors may also help in this regard. |
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How to fill up the application form of a mutual fund scheme? |
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| An investor must mention clearly his name, address, number of units
applied for and such other information as required in the application
form. He must give his bank account number so as to avoid any fraudulent
encashment of any later date
for the purpose of dividend or repurchase. Any changes in the address,
bank account number, etc at a later date should be informed to the
mutual fund immediately. |
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What should an investor look into an offer document?
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| An abridged offer document, which contains very useful information, is
required to be given to the prospective investor by the mutual fund. The
application form for subscription to a scheme is an integral part of the
offer document. SEBI has prescribed minimum disclosures in the offer
document. An investor, before investing in a scheme, should carefully
read the offer document. Due care must be given to portions relating to
main features of the scheme, risk factors, initial issue expenses and
recurring expenses to be charged to the scheme, entry or exit loads,
sponsor’s track record, educational qualification and work experience of
key personnel including fund managers, performance of other schemes
launched by the mutual fund in the past, pending litigations and
penalties imposed, etc. |
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When will the investor get certificate or statement of account after investing in a mutual fund? |
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| Mutual funds are required to despatch certificates or statements of
accounts within six weeks from the date of closure of the initial
subscription of the scheme. In case of close-ended schemes, the
investors would get either a demat account statement or unit
certificates as these are traded in the stock exchanges. In case of
open-ended schemes, a statement of account is issued by the mutual fund
within 30 days from the date of closure of initial public offer of the
scheme. The procedure of repurchase is mentioned in the offer document. |
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How long will it take for transfer of units after purchase from stock markets in case of close-ended schemes? |
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According to SEBI Regulations, transfer of units is required to be done
within thirty days from the date of lodgment of certificates with the
mutual fund.
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As a unitholder, how much time will it take to receive
dividends/repurchase proceeds?
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A mutual fund is required to despatch to the unitholders the dividend
warrants within 30 days of the declaration of the dividend and the
redemption or repurchase proceeds within 10 working days from the date
of redemption or repurchase request made by the unitholder.
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| In case of failures to despatch the redemption/repurchase proceeds
within the stipulated time period, Asset Management Company is liable to
pay interest as specified by SEBI from time to time (15% at present) |
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Can a mutual fund change the nature of the scheme from the one specified in the offer document? |
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| Yes. However, no change in the nature or terms of the scheme, known as
fundamental attributes of the scheme e.g.structure, investment pattern,
etc. can be carried out unless a written communication is sent to each
unitholder and an advertisement is given in one English daily having
nationwide circulation and in a newspaper published in the language of
the region where the head office of the mutual fund is situated. The
unitholders have the right to exit the scheme at the prevailing NAV
without any exit load if they do not want to continue with the
scheme. The mutual funds are also required to follow similar
procedure while converting the scheme form close-ended to open-ended
scheme and in case of change in sponsor |
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How will an investor come to know about the changes, if any, which may occur in the mutual fund? |
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There may be changes from time to time in a mutual fund. The mutual
funds are required to inform any material changes to their unitholders.
Apart from it, many mutual funds send quarterly newsletters to their
investors.
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| At present, offer documents are required to be revised and updated at
least once in two years. In the meantime, new investors are informed
about the material changes by way of addendum to the offer document till
the time offer document is revised and reprinted. |
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How to know the performance of a mutual fund scheme? |
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The performance of a scheme is reflected in its net asset value (NAV)
which is disclosed on daily basis in case of open-ended schemes and on
weekly basis in case of close-ended schemes. The NAVs of mutual funds
are required to be published in newspapers. The NAVs are also available
on the web sites of mutual funds. All mutual funds are also required to
put their NAVs on the web site of Association of Mutual Funds in India
(AMFI) http://www.amfiindia.com/ and thus the investors can access NAVs
of all mutual funds at one place.
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The mutual funds are also required to publish their performance in the
form of half-yearly results which also include their returns/yields over
a period of time i.e. last six months, 1 year, 3 years, 5 years and
since inception of schemes. Investors can also look into other details
like percentage of expenses of total assets as these have an affect on
the yield and other useful information in the same half-yearly format.
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The mutual funds are
also required to send annual report or abridged annual
report to the unitholders at the end of the year.
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Various studies on mutual fund schemes including yields of different
schemes are being published by the financial newspapers on a weekly
basis. Apart from these, many research agencies also publish research
reports on performance of mutual funds including the ranking of various
schemes in terms of their performance. Investors should study these
reports and keep themselves informed about the performance of various
schemes of different mutual funds.
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Investors can compare the performance of their schemes with those of
other mutual funds under the same category. They can also compare the
performance of equity oriented schemes with the benchmarks like BSE
Sensitive Index, S&P CNX Nifty, etc.
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| On the basis of performance of the mutual funds, the investors should
decide when to enter or exit from a mutual fund scheme. |
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How to know where the mutual fund scheme has invested money mobilised from the investors?
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The mutual funds are required to disclose full portfolios of all of
their schemes on half-yearly basis which are published in the
newspapers. Some mutual funds send the portfolios to their unit holders.
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The scheme portfolio shows investment made in each security i.e. equity,
debentures, money market instruments, government securities, etc. and
their quantity, market value and % to NAV. These portfolio statements
also required to disclose illiquid securities in the portfolio,
investment made in rated and unrated debt securities, non-performing
assets (NPAs), etc.
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| Some of the mutual funds send newsletters to the unitholders on
quarterly basis which also contain portfolios of the schemes. |
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Is there any difference between investing in a mutual fund and in an initial public offering (IPO) of a company?
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| Yes, there is a difference. IPOs of companies may open at lower or
higher price than the issue price depending on market sentiment and
perception of investors. However, in the case of mutual funds, the par
value of the units may not rise or fall immediately after allotment. A
mutual fund scheme takes some time to make investment in securities. NAV
of the scheme depends on the value of securities in which the funds have
been deployed. |
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If schemes in the same category of different mutual funds are available, should one choose a scheme with lower NAV? |
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Some of the investors have the tendency to prefer a scheme that is
available at lower NAV compared to the one available at higher NAV.
Sometimes, they prefer a new scheme which is issuing units at Rs. 10
whereas the existing schemes in the same category are available at much
higher NAVs. Investors may please note that in case of mutual funds
schemes, lower or higher NAVs of similar type schemes of different
mutual funds have no relevance. On the other hand, investors should
choose a scheme based on its merit considering performance track record
of the mutual fund, service standards, professional management, etc.
This is explained in an example given below.
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Suppose scheme A is available at a NAV of Rs.15 and another scheme B at
Rs.90. Both schemes are diversified equity oriented schemes. Investor
has put Rs. 9,000 in each of the two schemes. He would get 600 units
(9000/15) in scheme A and 100 units (9000/90) in scheme B. Assuming that
the markets go up by 10 per cent and both the schemes perform equally
good and it is reflected in their NAVs. NAV of scheme A would go up to
Rs. 16.50 and that of scheme B to Rs. 99. Thus, the market value of
investments would be Rs. 9,900 (600* 16.50) in scheme A and it would be
the same amount of Rs. 9900 in scheme B (100*99). The investor would get
the same return of 10% on his investment in each of the schemes. Thus,
lower or higher NAV of the schemes and allotment of higher or lower
number of units within the amount an investor is willing to invest,
should not be the factors for making investment decision. Likewise, if a
new equity oriented scheme is being offered at Rs.10 and an existing
scheme is available for Rs. 90, should not be a factor for decision
making by the investor. Similar is the case with income or debt-oriented
schemes.
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| On the other hand, it is likely that the better managed scheme with
higher NAV may give higher returns compared to a scheme which is
available at lower NAV but is not managed efficiently. Similar is the
case of fall in NAVs. Efficiently managed scheme at higher NAV may not
fall as much as inefficiently managed scheme with lower NAV. Therefore,
the investor should give more weightage to the professional management
of a scheme instead of lower NAV of any scheme. He may get much higher
number of units at lower NAV, but the scheme may not give higher returns
if it is not managed efficiently. |
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How to choose a scheme for investment from a number of schemes available?
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| As already mentioned, the investors must read the offer document of the
mutual fund scheme very carefully. They may also look into the past
track record of performance of the scheme or other schemes of the same
mutual fund. They may also compare the performance with other schemes
having similar investment objectives. Though past performance of a
scheme is not an indicator of its future performance and good
performance in the past may or may not be sustained in the future, this
is one of the important factors for making investment decision. In case
of debt oriented schemes, apart from looking into past returns, the
investors should also see the quality of debt instruments which is
reflected in their rating. A scheme with lower rate of return but having
investments in better rated instruments may be safer. Similarly, in
equities schemes also, investors may look for quality of portfolio. They
may also seek advice of experts. |
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Are the companies having names like mutual benefit the same as mutual funds schemes?
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| Investors should not assume some companies having the name "mutual
benefit" as mutual funds. These companies do not come under the purview
of SEBI. On the other hand, mutual funds can mobilise funds from the
investors by launching schemes only after getting registered with SEBI
as mutual funds. |
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Is the higher net worth of the sponsor a guarantee for better returns?
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| In the offer document of any mutual fund scheme, financial performance
including the net worth of the sponsor for a period of three years is
required to be given. The only purpose is that the investors should know
the track record of the company which has sponsored the mutual fund.
However, higher net worth of the sponsor does not mean that the scheme
would give better returns or the sponsor would compensate in case the
NAV falls. |
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Where can an investor look out for information on mutual funds?
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Almost all the mutual funds have their own web sites. Investors can also
access the NAVs, half-yearly results and portfolios of all mutual funds
at the web site of Association of mutual funds in India (AMFI)
www.amfiindia.com. AMFI has also published useful literature for the
investors.
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Investors can log on to the web site of SEBI www.sebi.gov.in and go to
"Mutual Funds" section for information on SEBI regulations and
guidelines, data on mutual funds, draft offer documents filed by mutual
funds, addresses of mutual funds, etc. Also, in the annual reports of
SEBI available on the web site, a lot of information on mutual funds is
given.
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| There are a number of other web sites which give a lot of information of
various schemes of mutual funds including yields over a period of time.
Many newspapers also publish useful information on mutual funds on daily
and weekly basis. Investors may approach their agents and distributors
to guide them in this regard. |
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If mutual fund scheme is wound up, what happens to money invested?
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| In case of winding up of a scheme, the mutual funds pay a sum based on
prevailing NAV after adjustment of expenses. Unitholders are entitled to
receive a report on winding up from the mutual funds which gives all
necessary details. |
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Registrar and Transfer agent in a mutual fund ?
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What is an R&T agent?
Mutual fund investors do a number of transactions on any given day. They may buy, sell or switch units. They could request for a bank address change or an address change. Each such request is a transaction by itself. Mutual fund houses have to maintain records of each such transaction. A mutual fund may not want to invest in these processes nor would have the skilled expertise to handle these huge transactions on a professional basis. Hence, they would want to outsource this work to an agency which can handle these requests from investors on a regular basis. Registrar and Transfer agents (R&T agents) help them in this. An R&T agent maintains these records on behalf of the fund house, through its offices across the country. Computer Age Management Services (CAMS), Karvy and Deutsche Investor Services are the three main transfer agents that maintain these records.
How does an R&T agent function?
An R&T agent typically acts as a third-party on behalf of a fund house. The R&T agent has a wide network of branches across the country to service investors and help them execute their transactions. This huge network of branches across the country helps investors get forms of fund houses, complete their transactions and even obtain their account statements. It acts as single-window system for investors. An R&T agent also helps investors with information and detail on new fund offers, dividend distributions or even maturity dates in case of FMPs (fixed maturity plans). While such information is also available at fund houses, an R&T agent is a one-stop shop for all the information. Investors can get information about various investments in different schemes of different fund houses at a single place.
Why is an R&T agent needed?
From a mutual funds perspective, R&T agents help in saving costs. An R&T agent brings in reach for the mutual fund. Since the R&T agent has offices across the country, they also double as branches for the mutual funds that they service and help them in their sales process.
An R&T agent helps mutual fund investors to fill their forms and submit the same. Typically, investors hold a diversified portfolio and want to invest in different schemes of different fund houses. As per Securities and Exchange Board of India's (Sebi) rules, there is a cut-off time by when the investment has to be made for that day. So, if an investor has to make multiple investments, he will have to approach multiple fund houses. Instead, he can use an R&T agent's services to conduct his transactions.
How is an R&T agent compensated?
The mutual fund pays money for the services offered by the R&T agent. The charges would depend on the volume of transactions done for the mutual fund. The mutual fund, in turn, charges such expenses to the expense ratio of the fund. As an investor, while doing any transaction at the R&T agents office, you do not have to pay any charges. |
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