Initiative to help larger number of individuals from across the country to come into mutual fund distribution fold
Mutual fund industry body Amfi on Friday said it has reduced the ARN (AMFI Registration Number) registration and renewal fees for most distributor types, including individual ones, by 50 per cent of the existing rates, effective from May 1.
In addition, the EUIN (Employee Unique Identification Number) registration and renewal fees for employees cut down to Rs 500 from Rs 1,500 and Rs 750, respectively.
By reducing the ARN and EUIN registration and renewal fees, Amfi wants to encourage new and young individuals across the country to reach out to large base of small savers, especially in the Tier II and III cities and towns, to channelise financial savings into mutual fund asset class, the industry body said in statement.
The ARN registration and renewal fees for the individuals and proprietorship firm has been reduced by 50 per cent to Rs 1,500 and Rs 750, respectively, while for the post office and microfinance institutions (MFIs) the ARN registration and renewal fees has been slashed by 50 per cent to Rs 7,500 and Rs 3,750, respectively.
The urban co-operative banks, societies, trusts, HUFs and partnership firms will pay registration and renewal charges at 50 per cent reduction to Rs 10,000 and Rs 5,000, respectively, while the one-person company (OPC), LLPs, and Pvt. Ltd. Co. would pay 50 per cent downward revised registration and renewal fees at Rs 20,000 and Rs 10,000, respectively.
All fees will be subject to applicable taxes, Association of Mutual Funds in India (Amfi) said.
"We aim to have greater number of small savers to benefit from long term investment solutions offered by the mutual fund industry," Nilesh Shah, Chairman, Amfi said.
He, further, said this initiative of reducing the registration and renewal fees would help larger number of individuals from across the country to come into mutual fund distribution fold and contribute to the last mile connectivity.
N S Venkatesh, Chief Executive, Amfi said the reduced fees for ARN and EUIN registration and renewals for the mutual fund distributors would go a long way in helping the cause of mutual fund expansion.
"We also want the younger generation to look at mutual fund distribution as an exciting career opportunity and with this reduction in fees we hope to attract far higher number of new mutual fund distributors which would help the industry to enhance penetration and channelize small savings into long term market-linked savings solutions," he said.
According to him, rising affinity for mutual fund asset class would get a strong fillip with this reduction in the ARN registration and renewal fees for the distributor or fraternity.