Mutual Fund Charges

#1
Dear Sir ,

I am an Indian Investor in Mutual Funds . I would be greatly obliged if you could spare some moments to bring me out of my confusion . I understand SEBI has instructed all Mutual Fund to stop charging the Initial Expenses which could be ammortized over a period of 3 - 5 years . Also they can not charge any Entry Load . Further it has put a cap on the Management Fees that a Mutual Fund can charge it's investor . (Kindly refer www.sebi.gov.in/acts/mfamendjuly29.pdf .) So , now , what exactly are the charges left that a Mutual Fund can charge to the Investor (both transparently and opaquely) . What exactly are the fees that a Distributor gets from the Mutual Fund currently (in various forms) ? Does he get any fees other than the "trail" of 0.75 - 1 % p.a. ? Is the Mutual Fund able to charge any initial issue expenses to the Investor in any masked way ? Also in the current scenario , can the Distributor benefit , in any way ,by encouraging the investor (his client) to keep churning his Portfolio frequently ?
 

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