NEW DELHI : The Association of Mutual Funds in India (Amfi) has reduced the ARN (Amfi registration number) registration and renewal fees for most distributor types, including individual distributors, by 50%, effective 1 May.
The EUIN (employee unique identification number) registration and renewal fees, too, have been reduced from Rs1,500 and Rs750, respectively, to Rs500.
The ARN registration and renewal fees for individuals and proprietorship firms have been reduced by 50% to Rs1,500 and Rs750, respectively, while for the post office and microfinance institutions (MFIs) the registration and renewal fees stand reduced by 50% to Rs7,500 and Rs3,750, respectively.
The move is expected to encourage new and young individuals across the country to reach out to a large base of small savers, especially in the tier-II and -III cities and towns, to channelize financial savings into mutual fund asset class.
“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 a 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,” said N.S. Venkatesh, chief executive officer, Amfi.
Meanwhile, for urban co-op banks, societies, trusts, Hindu undivided families and partnership firms, the registration and renewal fees have been reduced by 50% to Rs10,000 and Rs5,000, respectively, while one-person company (OPC), LLPs, and Pvt. Ltd Co. would pay 50% downward revised fees at Rs20,000 and Rs10,000, respectively.
Commenting on the initiative, Nilesh Shah, chairman, Amfi said: “We aim to have a 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 a larger number of individuals from across the country to come into mutual fund distribution fold and contribute to the last mile connectivity.”