Multiple choice

Excess distribution expenses are to be borne by the

  1. AMC

  2. unit holders

  3. SEBI

  4. AMFI

Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

SEBI mandates caps on distribution expenses (typically 1-2% of net assets). Any expenses exceeding these regulatory limits must be borne by the AMC, not charged to the scheme/unit holders. This protects investors from excessive costs.