When can mutual funds charge an additional expense of 0.30% of daily net assets of the scheme? — Answer & Explanation

Options

If the new inflows from beyond top 30 cities are at least (a) 30 percent of gross new inflows in the scheme or (b) 15 percent of the average assets under management (year to date) of the scheme, whichever is higher

Correct answer
B

If the new inflows from beyond top 30 cities are at least (a) 20 percent of gross new inflows in the scheme or (b) 5 percent of the average assets under management (year to date) of the scheme, whichever is higher
C

If the new inflows from beyond top 15 cities are at least (a) 25 percent of gross new inflows in the scheme or (b) 15 percent of the average assets under management (year to date) of the scheme, whichever is higher
D

If the new inflows from beyond top 15 cities are at least (a) 10 percent of gross new inflows in the scheme or (b) 5 percent of the average assets under management (year to date) of the scheme, whichever is higher

Why this is the answer

Mutual funds can charge an additional expense of 0.30% of daily net assets if the new inflows from beyond the top 30 cities are significant, as defined by the option A.

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