Sir,
I invested in the Capital Funds/ Mutual Funds. Committed an investment upto 25,00,000 (TWENTY FIVE LAKHS) and invested upto 17,50,000/- (SEVENTEEN LAKH and FIFTY THOUSANDS) (i.e. I made 3 payments in 3 calls). I did not make rest of the investment as I did not receive my copy of the agreement upon entering into the contract with the investor and neither got it for past 3 years of the investment in the mutual fund. Eventually I was declared as a defaulting contributor and a huge sum of money was deducted from my investment as management costs.
Neither was I given any returns on his investment for 3 years on the amount I so invested into the fund.
The amount was deducted on the counts of:
a. Management fee on commitment amount upto commitment period (4 years) 2.25% - Rs.2,25,000.
b. Management fee on commitment amount upto commitment period (3 years) 2.25% - Rs.1,18,125.
c. One time setup fee on commitment – 1.00% - Rs. 25,000.
d. Annual Fund Expenses - 0.50% - Rs. 62,500.
A total amount of Rs. 4,30,625/- was deducted from the contributed amount and now I am given back Rs.13,19,375/- with no interest on the amount that he contributed and everything was said to be forfeited.
Question here is :
1. What is the limit of forfeiture that these mutual fund companies can do on an investment? If there is a limit then in what manner can it be forfeited and what amount?
2. Is there any way that I can get back my entire invested amount or atleast my share of the profit ?
3. How are these amount of management deductions computed or is it just the free will of the investment managers?
4. How can I go about this if I file a consumer complaint?
Regards,
CAclubindia
