RTA Mutual Fund Exam Important Points

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  • Segregated portfolio of unrated debt or money market instruments by mutual fund schemes of an issuer that does not have any outstanding rated debt or money market instruments can be created only in case of actual default of either the interest or principal amount.
  • Segregated portfolio will be effective from the day of credit event. An email or SMS to be sent to all unitholders of the concerned scheme.
  • NAV of both the segregated portfolio and main portfolio to be declared daily. Redemption and subscription are not allowed in the segregated portfolio.
  • In order to facilitate exit to unitholders in segregated portfolio, AMC shall enable listing of units of segregated portfolio on the recognized stock exchange within 10 working days of creation of segregated portfolio and also enable transfer of such units on receipt of transfer requests.
  • AMCs cannot charge investment and advisory fees on the segregated portfolio. However, TER (excluding the investment and advisory fees) can be charged, on a pro-rata basis only upon recovery of the investments in segregated portfolio.

NISM RTA MUTUAL FUND

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