Multiple choice

A no load scheme of mutual fund has weekly average net assets of 200Cr, it can charge maximum investment management fee of Rs.

  1. 4Cr

  2. 2.5Cr

  3. 2Cr

  4. 5Cr
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

For a no-load scheme, SEBI caps the investment management fee at 1% of weekly average net assets. With weekly average net assets of Rs. 200 crore, the maximum fee is 200 × 1% = Rs. 2 crore. This is part of the expense ratio regulations.

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