The Association of Mutual Funds in India (AMFI), the registering body for mutual fund distributors, has decided to reduce AMFI registration number (ARN) registration and renewal fees for most distributor types, including individual distributors, by 50%of the existing rates from 1 May 2021.
The employee unique identification number (EUIN) registration and renewal fees for the employees too have been reduced to Rs500 from Rs1,500 and Rs750, respectively, the mutual fund industry trade body says in a release.
Nilesh Shah, chairman of AMFI says, "We aim to have greater number of small savers to benefit from long term investment solutions offered by the mutual fund industry. 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."
The ARN registration and renewal fees for the individuals and proprietorship firm has been reduced by 50% to Rs1,500 and Rs750 respectively, while for the post office and microfinance institutions (MFIs) the ARN registration and renewal fees stand reduced by 50% to Rs7,500 and Rs3,750, respectively.
AMFI says, urban co-operative banks (UCBs), societies, trusts, Hindu undivided family (HUFs) and partnership firms will pay registration and renewal fees at 50% reduction to Rs10,000 and Rs5,000 respectively. The one-person company (OPC), limited liability partnerships (LLPs), and private limited companies would pay 50% downward revised registration and renewal fees at Rs20,000 and Rs10,000 respectively. All fees will be subject to applicable taxes.
By reducing the ARN and EUIN registration and renewal fees, AMFI says it also 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.
According to NS Venkatesh, chief executive (CEO) of AMFI 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.
He says, "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."
"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 fraternity," Mr Venkatesh added.