Brokerage Fees on Mutual Funds
This query is : Resolved
15 January 2010
As per SEBI new circular, commission or Fees on mutual funds cannot be deducted from the amount paid for purchase of MF. Thus, the banks are debiting the accounts for such commission or Fees.
My question is whether the above fees or commission should be shown under the Bank Charges or should be added to the cost of investment.
My question is whether the above fees or commission should be shown under the Bank Charges or should be added to the cost of investment.
Sambu Suresh
(Expert)
15 January 2010
The commission or fees what ever the expenses incurred are in connection with the purchase of Mutual funds.Suppose if the commission paid is not added to the cost of the mutual funds then they would be shown at the lesser value than the cost paid for it. Therefore it should be added to the cost of the mutual funds.
Randeep Singh
(Expert)
17 January 2010
Any expense while acquiring asset/investment forms part of cost of that asset, so initial commission/ fees paid also form part of cost.
Cheers!
Cheers!
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